NEW DELHI, April 11, 2026 : The Ministry of Finance India on Saturday increased the windfall tax (export duty) on diesel and aviation fuel, citing global market fluctuations and the need to ensure domestic availability.
As per the latest notification, export duty on diesel has been hiked to ₹55.5 per litre, while Aviation Turbine Fuel (ATF) now attracts a duty of ₹42 per litre, with immediate effect.
The revision comes just weeks after the government had imposed duties of ₹21.50 per litre on diesel and ₹29.5 per litre on ATF on March 26, reflecting a sharp upward adjustment in response to evolving global conditions.
Officials indicated that the move aims to maintain adequate domestic fuel supply and prevent exporters from capitalizing on rising international prices. The surge in crude oil rates has been linked to geopolitical tensions, particularly following the US-Israel strikes on Iran 2026, which disrupted energy markets worldwide.
Subsequently, a temporary easing of tensions was seen after a ceasefire agreement on April 8 between Iran, United States, and Israel, though volatility in oil prices continues to impact policy decisions.
Meanwhile, export duty on petrol remains unchanged at zero.
The latest hike underscores the government’s strategy to balance domestic fuel needs while navigating uncertainties in the global energy landscape.
