The Central Government has increased the windfall tax, or export duty, on diesel and aviation turbine fuel (ATF) while keeping fuel prices for domestic consumers unchanged. According to a notification issued by the Finance Ministry, the export duty on diesel has been raised to ₹14 per litre from ₹12 per litre, while the duty on ATF exports has been increased to ₹12.50 per litre from ₹10 per litre.
The revised rates came into effect immediately and are part of the government's periodic review of taxes on petroleum products based on international crude oil prices and refining margins. Officials said the move aims to ensure adequate domestic availability of fuel while allowing the government to capture a portion of the gains earned by refiners from exports.
Despite the hike in export duties, there has been no change in the prices of petrol, diesel, or ATF meant for domestic consumption. Consumers across the country will continue to purchase fuel at existing retail rates, providing relief amid concerns over global energy market volatility.
Industry experts noted that the increase follows a recent rise in international crude oil prices and improved export margins for Indian refiners. Higher export duties are expected to moderate overseas shipments and encourage greater supply in the domestic market. The measure may, however, have a limited impact on the profitability of refiners that derive a significant share of revenue from fuel exports.
India introduced windfall taxes on fuel exports in 2022 to regulate extraordinary gains earned by energy companies during periods of elevated global oil prices. Since then, the government has periodically revised the rates in line with market conditions.
The latest decision comes at a time when geopolitical developments in the Middle East and fluctuations in global crude prices continue to influence the energy sector. Policymakers are closely monitoring international markets to balance revenue collection, domestic fuel security, and inflation management.
Officials emphasized that the revised duties are targeted solely at exported fuel products and will not affect retail consumers. As a result, households, transport operators, and businesses using fuel within India are not expected to face any immediate increase in fuel costs.
The government is expected to continue reviewing export duties at regular intervals depending on global oil price movements and the overall supply-demand situation in the domestic market.
