The Centre cut the price of Aviation Turbine Fuel (ATF) for domestic airlines by Rs 5 per litre, bringing the effective rate down to Rs 110 per litre, even as it revised export duties on petrol, diesel and ATF a day earlier under its fortnightly review mechanism.

Export levies revised for new fortnight

The Ministry of Finance on Tuesday issued two notifications updating the Special Additional Excise Duty (SAED) applicable to fuel exports for the fortnight beginning July 1. The export duty on petrol has been fixed at Rs 4 per litre, while diesel will attract Rs 8.5 per litre. The Road and Infrastructure Cess on both fuels remains nil, meaning the SAED alone constitutes the entire export levy. A separate notification set the SAED on ATF exports at Rs 7.5 per litre. All three rates took effect from July 1.

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The revision is part of a review process the government introduced on March 27 to discourage exports and safeguard domestic fuel availability amid the ongoing West Asia crisis. Rates are reassessed every fortnight based on average international prices of crude oil, petrol, diesel and ATF recorded since the previous review, which was carried out on June 16.

Exemption list widened

Alongside the rate changes, the Centre has broadened the set of countries exempted from the export duty. Exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka were already exempt. That list now also includes Mauritius and the Maldives.

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Domestic pump prices unaffected

The notifications leave the excise duty on petrol and diesel meant for domestic consumption unchanged. As a result, while exporters will see their tax liability shift from Wednesday, consumers buying fuel at retail pumps in India will not be affected by these changes.

OMC and Aviation Stocks in focus

Stocks in the oil marketing and aviation sectors were in focus following the Centre’s decision to cut ATF prices and revise export duties on petroleum products. Key oil marketing stocks on investors’ radar included Indian Oil Corporation, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL). In the aviation space, InterGlobe Aviation (IndiGo), SpiceJet, GMR Airports, TAAL Tech, Dreamfolks Services, Taneja Aerospace & Aviation, and Global Vectra Helicorp were also in focus.