Diesel and ATF export duties cut; cess waived for two weeks
Diesel and ATF export duties cut; cess waived for two weeks
Export duties on diesel and ATF slashed and road/infra cess waived for a fortnight from May 1 to ease domestic supply and bolster exports.
The Finance Ministry on Thursday evening announced a fresh round of relief for exporters of diesel and aviation turbine fuel (ATF), cutting the excise duty on these exports and waiving the road and infrastructure cess for a fortnight. The duty on diesel exports has been slashed to ₹23 per litre from ₹55.5, while the duty on ATF exports is cut to ₹33 per litre from ₹42. The Special Additional Excise Duty (SAED) on petrol exports remains nil. The changes take effect from May 1 and follow the last revision on April 11.
Officials said the measure is designed to rejuvenate export momentum while ensuring domestic availability and cushioning any potential supply disruptions. By lowering export duties and eliminating the cess for two weeks, the government aims to balance export demand with the need to keep sufficient diesel supplies in the domestic market. The road and infrastructure cess on diesel exports will be nil for the next fortnight, the government noted, as part of a temporary adjustment to smoothen supply chains.
On petrol, the export duty remains at zero, aligning with broader policy signals to support fuel exports when global markets are volatile. Industry observers say the price impact in the domestic market will hinge on crude trends and demand, but the move could ease cost pressures for manufacturers and energy-intensive users who depend on diesel and ATF rather than petrol.
These are temporary steps, the finance ministry stressed, and they will be reviewed after the fortnight ends. The government says the aim is to protect domestic users while preserving export viability, reflecting a balancing act in the current energy landscape.
