The government has imposed export duties on diesel and aviation turbine fuel (ATF) and reduced domestic levies on petrol and diesel to ensure adequate availability and protect consumers from rising global oil prices caused by the West Asia crisis.
Speaking at an Inter-Ministerial Briefing on Recent Developments in West Asia, Chairman of the Central Board of Indirect Taxes and Customs, Vivek Chaturvedi, said that the move aims to discourage exports when international prices have surged sharply, creating incentives for refiners to sell fuel overseas. He stated that an export duty of 21.5 rupees per litre has been imposed on diesel and 29.5 rupees per litre on ATF, while petrol remains exempt. He noted that these rates will be reviewed on a fortnightly basis.
Joint Secretary of the Ministry of Petroleum and Natural Gas, Sujata Sharma, said that India currently has sufficient crude inventories, with supplies secured for the next two months, and that LPG and PNG availability remains comfortable. She added that refineries are operating at full or higher capacity, while domestic LPG production has increased by nearly 40%. Highlighting import dependence, she said that nearly 90% of LPG supplies were earlier routed through the Strait of Hormuz, prompting the government to prioritize domestic consumers.
The Secretary further noted that commercial LPG supplies were initially curtailed and then restored in phases, from 10% to 30%, later 50%, and now 70%. She added that around 30 lakh tonnes of LPG have been supplied to commercial consumers since March 14.