New Delhi, Jul 1: The Centre on Wednesday reduced the price of Aviation Turbine Fuel (ATF) supplied to domestic airlines by ₹5 per litre, bringing the effective ATF rate down to ₹110 per litre. The reduction follows a decline in global crude oil prices, the Finance Ministry said.
The move is expected to provide relief to domestic airlines by lowering aviation fuel costs, which account for a significant portion of their operating expenses.
As part of its fortnightly review of fuel export levies, the government also revised the Special Additional Excise Duty (SAED) on the export of petroleum products with effect from July 1. Under the revised structure, the export duty has been fixed at:
₹4 per litre on petrol
₹8.50 per litre on diesel
₹7.50 per litre on Aviation Turbine Fuel (ATF)
The Road and Infrastructure Cess on these exports will continue to remain zero, making the SAED the only export levy applicable.
The fortnightly review mechanism, introduced on March 27, aims to regulate fuel exports and ensure adequate domestic availability during periods of global market volatility, particularly amid geopolitical tensions in West Asia. The duty rates are determined based on the average international prices of crude oil and refined petroleum products since the previous review. The last revision was announced on June 16.
The Finance Ministry clarified that excise duties on petrol and diesel sold within India remain unchanged, meaning there will be no immediate impact on retail fuel prices at petrol pumps. The revised duties apply only to exported petroleum products and affect exporters' tax liabilities.
In another significant move, the government expanded the list of countries eligible for exemption from these export duties on fuel supplied by public sector oil marketing companies. In addition to Nepal, Bhutan, Bangladesh and Sri Lanka, the exemption will now also apply to Mauritius and the Maldives.
The latest revisions are aimed at balancing domestic fuel availability while responding to changing global energy market conditions.
