New Delhi: The government on Wednesday cut the price of Aviation Turbine Fuel (ATF) sold to domestic carriers by Rs 5 per litre, bringing the effective ATF rate to Rs 110 per litre. The change follows a dip in global crude oil prices, the Finance Ministry said.
As part of its fortnightly review of export levies, the Centre also revised Special Additional Excise Duty (SAED) on fuel exports effective July 1. The SAED has been set at Rs 4 per litre for petrol, Rs 8.5 per litre for diesel and Rs 7.5 per litre for ATF. The Road and Infrastructure Cess remains at zero for these exports, meaning the SAED constitutes the entire export duty.
The fortnightly levy mechanism, introduced on March 27 to discourage exports and protect domestic availability amid the West Asia crisis, bases its rates on average international prices of crude and refined products since the previous review. The earlier update was issued on June 16.
The latest notifications from the Finance Ministry also expand the list of countries whose imports by public sector oil firms are exempt from these export duties. Previously confined to Nepal, Bhutan, Bangladesh and Sri Lanka, the exemption now covers Mauritius and the Maldives as well.
The government clarified that excise duties on petrol and diesel sold within India remain unchanged, so retail pump prices will not be directly affected. The revisions alter tax liabilities for exporters but leave domestic fuel taxation intact.
