Noida, Apr 12 (APAC Media): The central government on Saturday (April 11, 2026) raised the export duty, or windfall tax, on diesel and aviation turbine fuel (ATF) in a bid to ensure adequate domestic supply amid continued volatility in global oil markets.
The export duty on diesel has been increased to Rs 55.5 per litre, while ATF now attracts a duty of Rs 42 per litre, according to a notification issued by the Finance Ministry.
The revised rates came into immediate effect.
This marks a sharp increase from the duties imposed on March 26, when the government had levied Rs 21.50 per litre on diesel and Rs 29.50 per litre on ATF. The earlier move was aimed at boosting domestic availability of fuel as global crude oil prices surged due to geopolitical tensions in West Asia.
The spike in crude prices followed the United States–Israel strikes on Iran (February 2026) on February 28, which triggered retaliatory action from Tehran and disrupted global energy markets. Although tensions eased slightly after the West Asia ceasefire agreement (April 2026) on April 8, uncertainty continues to loom over oil supplies.
“The increase in export duty is aimed at ensuring sufficient availability of fuels in the domestic market and protecting consumers from global price shocks,” a senior government official said.
The move is also expected to help the government capture a share of windfall gains earned by exporters during periods of elevated crude prices. Analysts believe that while the higher duties may temporarily affect export volumes, they will support domestic price stability.
Officials expressed that the latest hike is intended to discourage refiners from diverting supplies to export markets where higher international prices offer better margins.
Notably, export duty on petrol continues to remain nil, reflecting a calibrated approach by the government in managing different fuel segments.
The decision underscores the Centre’s emphasis on maintaining domestic energy security while adapting to changing global market conditions.
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