Government Reintroduces Export Duties

The government reinstated export duties from March 26, imposing ₹21.50 per litre on diesel and ₹29.50 per litre on ATF, while keeping petrol exports duty-free. The move comes amid global supply disruptions linked to geopolitical tensions and aims to prioritise domestic fuel availability.

Additionally, the government reduced excise duty on petrol and diesel by ₹10 per litre, providing relief to oil marketing companies facing cost pressures.

 Why Reliance SEZ Refinery Is Exempt

Reliance operates two major refineries in Jamnagar, Gujarat—one catering to domestic demand and another SEZ unit dedicated to exports. According to official clarification, judicial precedents established during the 2022 windfall tax regime ensure that special additional excise duties do not apply to SEZ operations.

This means a significant portion of Reliance’s diesel and jet fuel exports—largely produced from its SEZ refinery—will not be impacted by the new tax.

 Impact on Refining Margins and Markets

Analysts suggest that while the export duty may cap refining margins for non-SEZ players, Reliance’s exposure remains limited due to the exemption. Reports indicate that around 75% of its diesel and 35% of its jet fuel output comes from the SEZ unit.

Although global crude prices and freight costs remain elevated, strong fuel spreads could help offset the impact of duties on non-exempt volumes.

 Policy Strategy and Future Outlook

The government is expected to review the export tax on a fortnightly basis, adjusting rates in line with global market conditions. The policy reflects a balancing act between ensuring domestic fuel supply and maintaining competitiveness of Indian refiners.

For investors, Reliance’s SEZ advantage reinforces its position as a resilient player in the energy sector, particularly during periods of regulatory and geopolitical uncertainty.