Government Increases Export Duty On Diesel To Rs 55.5 per Litre, Aviation Fuel To Rs 42

Finance Ministry hikes export duty on diesel to Rs 55.5/litre and ATF to Rs 42, keeps petrol unchanged; move aims to curb price impact on airfares amid volatile global oil markets.

The Government has announced a steep hike in export duties on diesel and Aviation Turbine Fuel (ATF).

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• Diesel and ATF export duties steeply hiked by government.

The Finance Ministry on Saturday announced a steep hike in export duties on diesel and Aviation Turbine Fuel (ATF), while leaving petrol duties unchanged.

Under the revised rates, diesel export duty has been increased from Rs 21.5 per litre to Rs 55.5 per litre, and ATF from Rs 29.5 per litre to Rs 42 per litre. The new rates come into effect immediately.

Petrol, however, has been left untouched, with its export duty holding at nil — a signal that domestic petrol supplies are considered adequate for now.

The move comes as the government considers steps to prevent higher fuel costs from passing through to airfares. Officials are reviewing tax and fee measures to shield airlines and passengers amid volatile global crude oil prices.

The earlier duties, imposed on March 26, were aimed at ensuring adequate domestic fuel availability during the West Asia conflict and curbing windfall gains for exporters amid widening global price differentials as crude prices surged.

Tensions escalated on February 28 after the United States and Israel launched military strikes on Iran, prompting a strong response from Tehran. A temporary pause followed on April 8, when the three sides agreed to a two-week ceasefire after the conflict disrupted energy markets across the Middle East.