New Delhi, April 13: The Ministry of Finance has increased excise duties and windfall taxes on key petroleum products, including high-speed diesel and aviation turbine fuel (ATF), with immediate effect, as part of efforts to align domestic pricing with elevated global crude levels.
The government raised the export duty on diesel to ₹55.5 per litre from ₹21.5 per litre, while the Special Additional Excise Duty on high-speed diesel has been increased to ₹24 per litre. Additionally, the Road and Infrastructure cess on diesel has been revised upward to ₹36 per litre under the Finance Act, 2018.
Duty on aviation turbine fuel has also been increased to ₹42 per litre from ₹29.5 per litre, while export duty on petrol remains unchanged at nil.
The revisions are aimed at preventing exporters from benefiting from price differentials amid volatile global markets, particularly in the wake of disruptions triggered by the West Asia conflict.
Global oil prices have seen heightened volatility following military escalations involving the United States, Israel, and Iran, which disrupted supply chains before a temporary ceasefire was reached on April 8.
In parallel, domestic aviation fuel prices have risen sharply, with oil marketing companies increasing ATF rates for domestic carriers by 8.56% to ₹1,04,927.18 per kilolitre. Prices for foreign carriers and non-scheduled operators have seen a steeper increase of over 114%, reflecting global pricing pressures.
Analysts indicate that while higher ATF prices may exert cost pressures on airlines, they could provide short-term margin support to oil marketing companies.
The duty revisions, effective immediately, underscore the government’s responsive policy stance amid ongoing global energy market disruptions.
