The Centre has sharply raised export duty on fuels, increasing the levy on diesel from Rs 21.5 per litre to Rs 55.5 per litre and on aviation turbine fuel (ATF) from Rs 29.5 per litre to Rs 42 per litre, while keeping export duty on petrol unchanged at nil, the finance ministry said.

The move comes alongside a broader revision in domestic fuel taxation, with the government raising the special additional excise duty on high-speed diesel to Rs 24 per litre and the road and infrastructure cess to Rs 36 per litre, effective immediately.

The revisions were notified on April 11 through a series of notifications issued by the Department of Revenue, which cited the need for “immediate action” under prevailing circumstances.

The hike in excise duty has been carried out by amending the Eighth Schedule of the Finance Act, 2002, while the increase in road and infrastructure cess has been effected through changes to the Finance Act, 2018 framework.

The move is aimed at strengthening government revenues at a time when fuel taxes remain a critical source of fiscal support, even as global crude oil prices remain volatile.

In addition to the headline increases, the government has aligned multiple components of the diesel duty structure through amendments to earlier notifications issued on March 26. These include substituting rates to Rs 24 per litre in certain provisions, while revising other components to Rs 42 per litre and Rs 31.5 per litre.

The export duty hikes mark a sharp increase from the March 26 levels, when the levy was set at Rs 21.50 per litre on diesel and Rs 29.5 per litre on ATF to boost domestic fuel availability amid the West Asia conflict.

The levies were also aimed at preventing exporters from taking undue advantage of price differentials as global crude prices surged following the outbreak of hostilities.

Tensions escalated after the United States and Israel launched military strikes against Iran on February 28, triggering retaliation from Tehran. A temporary respite came on April 8, when the three countries agreed to a two-week ceasefire, easing pressure on global energy markets.

Published on: Apr 11, 2026 8:15 PM IST