- Diesel export duty raised to ₹55.5/litre, ATF to ₹42/litre
- New rates effective immediately, says Finance Ministry
- Move aimed at boosting domestic supply and curbing exports
- Decision linked to global oil price surge due to West Asia tensions
GG News Bureau
New Delhi, 12th April: The Centre on Saturday sharply increased the export duty, or windfall tax, on diesel and aviation turbine fuel (ATF), citing global oil market volatility and the need to ensure domestic availability.
According to a notification issued by the Ministry of Finance, the export duty on diesel has been raised to ₹55.5 per litre, while ATF duty has been increased to ₹42 per litre, with immediate effect.
The latest revision marks a steep jump from March 26 levels, when duties stood at ₹21.50 per litre for diesel and ₹29.5 per litre for ATF.
Why the Hike?
Officials indicated that the move is aimed at ensuring adequate domestic fuel supply and preventing exporters from capitalising on higher global prices. Crude oil prices have surged amid geopolitical tensions in West Asia, impacting energy markets worldwide.
The escalation followed military strikes by the United States and Israel on Iran on February 28, which triggered retaliatory actions and disrupted global oil supply chains.
Although a temporary ceasefire agreement was reached on April 8 between Iran, the US, and Israel, volatility in global oil prices continues to influence domestic policy decisions.
Petrol Duty Unchanged
The government has maintained zero export duty on petrol, indicating a selective approach to taxation based on domestic consumption patterns and supply dynamics.
Policy Signal
The windfall tax mechanism is used by the government to regulate exports during periods of global price spikes, ensuring that domestic consumers are protected from supply shortages and price shocks.
With global energy markets remaining uncertain, further adjustments in fuel duties may be expected in the coming weeks.
