Government hikes petrol export levy to ₹2.5 per litre to ensure domestic availability
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims·
Energy security and fiscal policy: a GS3 case study on balancing domestic supply with international trade.
Why in news
The government increased the petrol export levy to ₹2.5 per litre to disincentivise exports and ensure domestic fuel availability amidst the West Asia conflict.
Background
The government hiked the petrol export levy from ₹0.5 to ₹2.5 per litre starting October 16. Conversely, the diesel export levy was reduced from ₹16 to ₹8.5 per litre, while the aviation turbine fuel (ATF) levy remained constant at ₹10.5 per litre.
Facts for Prelims
- FactPetrol export levy: Increased to ₹2.5 per litre from ₹0.5 per litre.
- FactDiesel export levy: Reduced to ₹8.5 per litre from ₹16 per litre.
- FactAviation Turbine Fuel (ATF) export levy: Remains unchanged at ₹10.5 per litre.
- FactReview Frequency: Government conducts fortnightly reviews of export levies based on international benchmark prices.
Prelims practice question
What is the current export levy for Aviation Turbine Fuel (ATF) as per the government's latest update?
- (a)₹15.0 per litre
- (b)₹5.0 per litre
- (c)₹10.5 per litre
- (d)₹20.0 per litre
Show answer
Answer: (c) ₹10.5 per litre — The note states that the aviation turbine fuel (ATF) levy remains constant at ₹10.5 per litre.
For Mains
Q. Discuss the significance of export levies in balancing domestic energy security with international trade obligations during periods of geopolitical instability.
Dimensions to cover in your answer
- Energy security: Balancing domestic fuel availability against export-driven revenue in volatile geopolitical contexts
- Price volatility: Impact of international benchmark price fluctuations on domestic retail fuel stability
- Trade policy: Use of fiscal levers like export levies to manage supply-side shocks during regional conflicts
Keywords: Export Levy · Energy Security · Domestic Availability · Price Volatility · Fiscal Policy · Supply Chain Management
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.