India Slashes Aviation Fuel Price, Revises Export Duties

The Indian government has reduced the price of Aviation Turbine Fuel (ATF) for domestic airlines by Rs 5 per litre, now priced at Rs 110 per litre. Additionally, export duties on petrol, diesel, and ATF have been revised, while domestic fuel excise duties remain unchanged.

In a significant move, the Indian government on Wednesday announced a reduction in the price of Aviation Turbine Fuel (ATF) by Rs 5 per litre for domestic airlines, effectively bringing the rate down to Rs 110 per litre. The decision comes amidst a broader revision of export duties on fuel, including petrol, diesel, and ATF.

According to the Ministry of Finance, the revised export duties are part of a fortnightly review introduced to ensure the availability of petroleum products domestically, amid geopolitical tensions in West Asia. The new export duty on petrol is set at Rs 4 per litre, diesel at Rs 8.5 per litre, and ATF at Rs 7.5 per litre, effective from July 1.

Despite the changes in export levies, the excise duty on petrol and diesel for domestic consumers remains unaffected. However, the list of countries exempt from these export duties has expanded to include Mauritius and the Maldives, alongside Nepal, Bhutan, Bangladesh, and Sri Lanka. The government evaluates these rates bi-weekly, relying on average international oil prices to inform its decisions.