India Raises Export Duties on Diesel and ATF

The Indian government has sharply raised export duties on diesel and aviation turbine fuel, effective immediately following a Finance Ministry notification on April 11, as part of efforts to secure domestic fuel supplies amid surging global oil prices.

The export duty on diesel, often called a windfall tax, increased from 21.5 rupees per litre to 55.5 rupees per litre. For aviation turbine fuel, known as ATF, the levy rose from 29.5 rupees per litre to 42 rupees per litre. The duty on petrol remains unchanged at zero, signaling that domestic supplies of that fuel are adequate. Officials stated that the adjustments aim to deter refiners from prioritizing exports over local needs, especially as international crude oil prices have exceeded 100 dollars per barrel due to geopolitical tensions in West Asia.

This policy shift builds on measures introduced on March 26, when initial export duties were imposed on diesel and ATF to address rising global energy costs. Those earlier steps coincided with reductions in domestic excise duties on petrol and diesel to ease the burden on consumers and oil marketing companies. The current hikes come against a backdrop of disruptions in key oil...