The Indian Finance Ministry has announced a sharp increase in export duties on key petroleum products, effective Saturday. The duty on diesel exports has surged from INR 21.5 per litre to INR 55.5 per litre, while the levy on Aviation Turbine Fuel (ATF) rose from INR 29.5 INR per litre to INR 42 per litre. Notably, the export duty on petrol remains at Nil. This fiscal adjustment comes just weeks after the government reintroduced windfall taxes in March 2026 to counter volatility sparked by the ongoing West Asia crisis. Officials stated the hike aims to safeguard domestic fuel security and discourage excessive outbound shipments by private refiners as global crude prices fluctuate near USD 100 per barrel. By increasing these levies, the government intends to ensure that sufficient supplies remain available for the domestic market. While these changes impact export profitability for major refiners, the Finance Ministry continues to monitor international crack margins to calibrate the tax structure every fortnight.

Diesel Export Duty More Than Doubled, ATF Levy Raised

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