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Informist, Saturday, Apr. 11, 2026

--Govt raises excise duty on diesel exports to INR 55.5/ltr from INR 21.5/ltr 
--Govt keeps export duty on petrol unchanged at nil 
--Govt raises duty on ATF to INR 42/ltr from INR 29.5/ltr 
 

MUMBAI – The government on Saturday hiked the windfall gains tax on the export of diesel and aviation turbine fuel. The government has hiked excise duty on export of diesel to INR 55.5 per litre from INR 21.5 per litre and aviation turbine fuel to INR 42 per litre from INR 29.5 per litre, the finance ministry said in a notification. The government has hiked the excise duty on exports to ensure domestic availability of the fuels. 

The government first imposed export duties on diesel and aviation turbine fuel on Mar. 27, in the wake of a surge in crude oil prices following the war in West Asia. The war in West Asia, which began on Feb. 28, has increased India's exposure to energy and price shocks, given New Delhi's dependence on the Gulf region for crude oil and liquefied petroleum gas supplies.

The government has also hiked special additional excise duty and Road and Infrastructure Cess on high-speed diesel to INR 24 per litre and INR 36 per litre, respectively. As per the Petroleum Planning and Analysis Cell, the excise duty on high-speed diesel was nil, and the cess on it was INR 2 per litre. 

The hike in export duties is not to "boost revenue for the government" but to ensure exporters do not take "undue advantage due to price differences," a government official said. Since the war broke out in West Asia, crude oil prices have surged to as high as $120 per barrel from $70 per barrel before the war. Prices have, however, cooled to around $96 per barrel after US President Donald Trump announced the ceasefire early Wednesday. 

The government has kept the export duty on petrol unchanged at nil. These changes in duties take effect immediately. These duty changes will also be reviewed by the Centre every fortnight. 

After the government had imposed the export duty of INR 21.50 per litre on diesel and INR 29.50 per litre on aviation turbine fuel on Mar. 27, Central Board of Indirect Taxes and Customs Chairman Vivek Chaturvedi had said that the government would earn about INR 15 billion every fortnight from the additional duty. With the export duty almost doubled, the government could earn nearly double the INR 15 billion per fortnight.

End

US$1 = INR 92.73

Reported by Priyasmiita Dutta

Edited by Saji George Titus

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