Shares of Mangalore Refinery and Petrochemicals Limited declined approximately 3% on April 13 after the government announced a sharp increase in export duties on high-speed diesel and aviation turbine fuel, effective immediately.
The stock opened at ₹173.00 against its previous close of ₹174.62, touching a session high of ₹173.34 and a low of ₹168.61. The 52-week range stands between ₹120.00 and ₹212.31.
According to the Finance Ministry’s notification, the export duty on high-speed diesel has been raised from ₹21.5 per litre to ₹55.5 per litre, and on Aviation Turbine Fuel from ₹29.5 per litre to ₹42 per litre. The hike was effected through five notifications by raising the Special Additional Excise Duty on diesel to ₹24 per litre and adjusting the Road and Infrastructure Cess, along with amendments to earlier notifications issued on March 26, 2026.
Government officials clarified that the increase is not aimed at raising revenue but at preventing exporters and refiners from taking undue advantage of the prevailing price difference between domestic and international markets. This marks the second adjustment in export duties in less than three weeks, with the first round having been imposed in late March when international prices had spiked sharply. Officials indicated that the rates would continue to be reviewed regularly, potentially every fortnight, depending on market conditions.
The development is negative for refiners such as MRPL, which export a significant portion of their refined fuel output. Higher export duties compress refining margins on exported volumes and reduce the incentive to process crude for export, particularly when international prices are elevated.
Mangalore Refinery and Petrochemicals Limited is a subsidiary of Oil and Natural Gas Corporation Limited and a Category 1 Miniratna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas. The company operates a 15 million metric tonne refinery in Dakshina Kannada district of Karnataka.
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