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India Hikes Diesel & Jet Fuel Duties to Curb Exports Amid Global Volatility

The Indian government has immediately increased the special additional excise duty on high-speed diesel to Rs 24 per litre and the road cess to Rs 36 per litre. The export duty or windfall tax on diesel has been sharply raised from Rs 21.5 to Rs 55.5 per litre. Simultaneously, the levy on Aviation Turbine Fuel (ATF) has been increased from Rs 29.5 to Rs 42 per litre. The revisions are aimed at aligning domestic taxes with volatile global crude prices and preventing exporters from gaining undue advantage.

Key Points: India Raises Diesel, ATF Duties Immediately to Check Exports

  • Diesel export duty hiked by Rs 34/litre
  • ATF levy raised to Rs 42/litre
  • Move aligns duties with global crude prices
  • Aims to prevent undue exporter advantage
2 min read

Govt raises diesel duties, hikes ATF levy with immediate effect

Govt hikes windfall tax on diesel to Rs 55.5/litre and ATF levy to Rs 42/litre. Move aims to align with global crude prices and curb exporter gains.

"circumstances warranted immediate action - Finance Ministry Notification"

New Delhi, April 11

The Centre on Saturday increased excise duties on petroleum products, including high-speed diesel, with immediate effect, according to a notification issued by the Ministry of Finance.

The Union government has hiked the export duty or windfall tax on diesel by Rs 34 per litre to Rs 55.5 per litre from Rs 21.5 per litre, with immediate effect.

As per the Gazette notification, the Special Additional Excise Duty on high-speed diesel has been raised to Rs 24 per litre.

In a separate notification, the Union government also increased the Road and Infrastructure cess on diesel to Rs 36 per litre under provisions of the Finance Act, 2018.

The Centre said the revisions were aimed at aligning domestic duties with rising global crude prices and preventing exporters from gaining undue advantage due to price differentials.

Meanwhile, duty on aviation turbine fuel (ATF) has also been raised from Rs 29.5 per litre to Rs 42 per litre, while export duty on petrol continues to remain nil.

Global oil markets have remained volatile following the escalation of conflict in West Asia.

On February 28, the US and Israel launched military strikes against Iran, triggering retaliatory actions from Tehran.

Subsequently, on April 8, Iran, the US and Israel agreed to a two-week ceasefire after the conflict disrupted energy markets and trade flows across the West Asia region.

The notification said the decision to revise duties was taken as circumstances warranted immediate action.

Further amendments have also been made to earlier notifications issued on March 26, 2026, revising applicable duty rates on petroleum products.

All the changes have come into force with immediate effect, the notification added.

Earlier, oil marketing companies hiked ATF prices.

Rates for domestic carriers were increased by Rs 8,289.04 per kilolitre, or 8.56 per cent, to Rs 1,04,927.18 per kilolitre from Rs 96,638.14 per kilolitre.

Meanwhile, prices for foreign carriers and non-scheduled, charter and ad-hoc operators were raised more sharply by 114.5 per cent to Rs 2,07,341.22 per kilolitre.

Analysts said the increase in ATF prices may offer short-term relief to oil marketing companies.

- IANS

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Reader Comments

S
Sarah B
The hike in ATF levy is massive! Just saw the numbers for foreign carriers - over 114% increase. This will definitely make international flights more expensive. Planning a trip abroad just got a lot costlier.
A
Aditya G
If this prevents exporters from taking undue advantage and helps stabilize our domestic market, then it's a necessary step. The West Asia conflict has made everything volatile. The government had to act. Jai Hind.
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Priya S
My father runs a transport business. This diesel duty hike means his operating costs will shoot up. How are small businesses supposed to survive with such sudden changes? A little more warning would have been humane.
M
Michael C
Interesting that petrol export duty remains nil while diesel gets hit. Shows where the government's revenue priorities lie. The aviation sector is going to feel this ATF hike immediately.
K
Kavya N
"Circumstances warranted immediate action" - yes, but was there no other way? This feels like a knee-jerk reaction. The common citizen always bears the brunt of these global issues. Vegetables, fruits, travel... everything will cost more now.
V
Vikram M
Respectfully, while the government cites global factors, there must be more transparency. How much of this is truly about aligning with global prices versus

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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