Govt to hold tweaks to excise duty on diesel, ATF exports until poll results
This story was originally published at 15:18 IST on 30 April 2026
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By Priyasmita Dutta
NEW DELHI – The finance ministry will not make changes to excise duties on diesel and aviation turbine fuel exports till the 2026 Assembly election results are out, a senior finance ministry official said Thursday. The Election Commission of India will declare the results of the assembly elections in Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry on Monday.
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 excise duty on exports is aimed at ensuring the domestic availability of the fuels. 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 changes in duties, which had taken effect immediately, were to be reviewed by the Centre every fortnight. Upon the first review, exactly in a fortnight, the government had 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. However, since Apr. 11, the duties were not revised.
Since the war broke out in West Asia, crude oil prices have surged to a four-year high of $126 per barrel on Thursday, from the sub-$73 per barrel before the war. 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 had said earlier during the month.
The finance ministry's decision to hold the duty changes highlights how deeply intertwined price pressures – especially fuel prices – are with elections. Within the five states and Union Territories that went for Assembly polls this month, Kerala, West Bengal, and Tamil Nadu are Opposition-ruled states. The Prime Minister Narendra Modi-led Bharatiya Janata Party is making an effort to come to power in these states, and in this situation, higher duties – even if it is meant to protect domestic availability – can snowball into a narrative that works against the ruling party. End
US$1 = INR 95.09
Edited by Akul Nishant Akhoury
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