The Central Government has reduced the price of Aviation Turbine Fuel (ATF) for domestic airlines from July 1, offering some relief to the aviation sector.
The price has been cut by ₹5 per litre, bringing the effective rate down to around ₹110 per litre.
Along with the ATF price cut, the government has also revised export duties on petrol, diesel and ATF under its fortnightly review system.
New Export Duty Rates Effective From July 1
The Ministry of Finance has announced revised Special Additional Excise Duty (SAED) rates on fuel exports for the new fortnight.
The updated export duties are:
Petrol: ₹4 per litre
Diesel: ₹8.50 per litre
Aviation Turbine Fuel (ATF): ₹7.50 per litre
The Road and Infrastructure Cess on petrol and diesel remains zero, meaning the SAED is the only export tax currently applicable.
Why Does the Government Review Export Duties?
The government reviews export duties every 15 days based on international prices of crude oil, petrol, diesel and ATF.
This review mechanism was introduced on March 27 to discourage excessive fuel exports and ensure sufficient fuel supply within the country, especially during the ongoing geopolitical tensions in West Asia.
The latest duty rates have been calculated after reviewing global fuel prices since the previous assessment on June 16.
More Countries Exempt From Export Duty
The government has also expanded the list of countries that are exempt from these export duties.
Earlier, exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka were exempt.
From July 1, Mauritius and the Maldives have also been added to the exemption list.
Will Petrol and Diesel Prices Change for Consumers?
No. The latest changes apply only to fuel exports.
There has been no change in the excise duty on petrol and diesel sold within India.
As a result, consumers buying fuel at retail petrol pumps will not see any immediate impact on domestic fuel prices because of these revisions.
Aviation and Oil Stocks in Focus
The reduction in ATF prices is expected to lower fuel costs for airlines, as aviation fuel is one of their biggest operating expenses.
Following the announcement, investors closely watched shares of major oil marketing companies such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).
In the aviation sector, stocks including InterGlobe Aviation (IndiGo), SpiceJet, GMR Airports, TAAL Tech, Dreamfolks Services, Taneja Aerospace & Aviation and Global Vectra Helicorp also remained in focus.
