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Fuel Tax Twist: Petrol Duty Cut, Diesel & ATF Levy Hiked
1 Nov
Summary
- Government cut petrol export duty to zero for a fortnight.
- Diesel and aviation fuel export duties saw a marginal increase.
- These changes impact IOCL, BPCL, and HPCL stock performance.
The central government has announced a revision in export duties on petroleum products, with notable changes for petrol, diesel, and aviation turbine fuel (ATF). Effective from October 31 for a fortnight, the export duty on petrol has been reduced to nil, a significant cut from the previous rate.
In contrast, the special additional excise duty (SAED) on diesel exports has been increased from ₹8.5 per litre to ₹11.5 per litre. Similarly, the duty on ATF exports has seen a marginal hike, moving from ₹10.5 per litre to ₹11 per litre.
These fiscal adjustments are anticipated to draw attention to the shares of key Indian oil marketing companies: Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). The reduction in petrol export duty offers some relief, while the increased duty on diesel and ATF may impact export realisations.
The government initially introduced these export duties in March, citing the need to enhance domestic fuel availability amidst global price surges and to curb exporters from exploiting price discrepancies.
