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India Curbs Fuel Export Duties; Domestic Jet Prices Flat, Industrial LPG Up

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The Indian government has cut its export duties on petrol, diesel and jet fuel, with lower levies effective from June 1, following a drop in global prices of crude oil and petroleum products, according to the Ministry of Finance on Saturday.

The duty on petrol exports was reduced by half to 1.5 Indian rupees ($0.02) per liter from the previous 3 rupees/L, imposed on May 16.

Export duty on diesel was revised down to 13.5 rupees/L from 16.5 rupees/L, and that on jet fuel was lowered to 9.5 rupees/L from 16 rupees/L.

"The rates are prescribed based on the average international prices of crude oil, petrol, diesel and jet fuel prevailing during the period since the last review," the ministry said.

The government began imposing such duties in late March to prioritize domestic supply of petroleum products, in view of the geopolitical tensions in the Middle East.

Meanwhile, excise duties on petrol and diesel used domestically remain the same, according to the statement.

At the same time, prices for aviation turbine fuel used in domestic flights are expected to remain steady, following a request from airlines, which are grappling with weak margins due to the US-Iran war, Bloomberg reported Monday, citing spokespeople from state-owned oil refiners.

The fuel price for domestic flights will reportedly remain flat at 104,927 rupees per kiloliter in New Delhi for June. Jet fuel prices were increased by 8.6% in April, but were unchanged in May, in line with a government directive.

State refiners also reduced jet fuel prices for international flights, according to the report, although the level of price cut was not immediately known.

Indian Oil, Bharat Petroleum, and Hindustan Petroleum did not immediately respond to' requests for comment.

Indian Oil, meanwhile, raised the price of 19-kilogram commercial liquefied petroleum gas for industrial clients by 42 rupees to 3,113.50 rupees in Delhi, according to its website. In Kolkata, LPG prices were up 53.50 rupees to 3,255.50 rupees.

LPG prices have risen sharply this year, from January levels of 1,691.50 rupees in Delhi and 1,795.00 rupees in Kolkata.

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