Particle.news
Download on the App Store

India Exempts Reliance’s Jamnagar SEZ From New Diesel and Jet Fuel Export Duties

The carve-out steers the levy toward domestic-market output with rates set for fortnightly review.

Overview

  • A CBIC official said Thursday that export levies on diesel and aviation turbine fuel do not apply to exports from Reliance’s SEZ refinery, citing court rulings.
  • The government set duties at Rs 21.5 per litre for diesel and Rs 29.5 for jet fuel to keep supplies available at home, and petrol exports stay untaxed.
  • For diesel, Rs 18.5 is a special additional excise duty with Rs 3 as an additional excise duty, and for jet fuel the full Rs 29.5 is the special duty.
  • For Reliance, the charge applies only to exports from its 33 mtpa domestic‑tariff‑area refinery, not its 35.2 mtpa SEZ unit at Jamnagar.
  • Citi Research estimates the taxes equal about $36 per barrel for diesel and $50 for jet fuel, and it says Reliance’s SEZ produced most of its diesel in FY25, which limits the direct hit; the move came with a Rs 10-per-litre excise cut on retail petrol and diesel and a promise to review the export duty every two weeks.