Daijiworld Media Network - New Delhi

New Delhi, Apr 12: The Centre has increased export duties on diesel and aviation turbine fuel (ATF), while keeping the levy on petrol exports unchanged, according to a notification issued by the Ministry of Finance on Saturday.

As per the revised rates, export duty on diesel has been raised sharply to Rs 55.5 per litre from Rs 21.5 per litre, while duty on ATF has been increased to Rs 42 per litre from Rs 29.5 per litre. Export duty on petrol continues to remain nil.

The changes were notified on April 11 and came into effect immediately. The government said it was “satisfied that circumstances exist which render it necessary to take immediate action,” as per the Gazette notification.

The revision has been carried out under provisions of the Central Excise Act, 1944 along with relevant sections of the Finance Acts, indicating a recalibration of duties on petroleum exports. The export duty, commonly referred to as a windfall tax, is aimed at boosting domestic fuel availability and preventing exporters from capitalising on elevated global prices.

The government had last revised these rates on March 26, when diesel duty was fixed at Rs 21.5 per litre and ATF at Rs 29.5 per litre.

The hike comes against the backdrop of rising geopolitical tensions in West Asia, which have disrupted global oil markets. Brent crude prices have surged past $100 per barrel amid supply concerns linked to the ongoing conflict involving the United States, Israel and Iran, particularly around the strategically crucial Strait of Hormuz.

Amid rising international prices, the sharp increase in export duty on diesel is aimed at ensuring sufficient domestic availability and stabilising fuel supply within the country.