Overview
- The Finance Ministry increased the special additional excise duty on diesel to Rs 14 per litre and on aviation turbine fuel to Rs 12.5 per litre, with the rates taking effect June 16.
- The export levy on petrol remains at Rs 1.5 per litre and existing excise duties on petrol and diesel for domestic consumption were left unchanged.
- The Petroleum Ministry said stocks of petrol, diesel, LPG and natural gas are adequate and that a temporary retail diesel cap of 200 litres per person and rules directing bulk users to consumer pumps remain in force to ease pump congestion.
- The SAED and RIC changes are set every fortnight using average international crude and product prices so the government can reduce export incentives and capture unusually high refining margins.
- Analysts say the hike will modestly cut refiners’ export margins and could trim shipments if sustained while continuing to protect domestic supply and add revenue to the exchequer.