Daijiworld Media Network - New Delhi

New Delhi, Apr 11: The Union government has increased excise duties on petroleum products, including high-speed diesel and aviation turbine fuel, with immediate effect, according to a notification issued by the Ministry of Finance.

As part of the revisions, the export duty—commonly referred to as windfall tax—on diesel has been significantly raised from Rs 21.5 per litre to Rs 55.5 per litre. Additionally, the Special Additional Excise Duty on high-speed diesel has been increased to Rs 24 per litre.

In a separate move, the government also enhanced the Road and Infrastructure cess on diesel to Rs 36 per litre under provisions of the Finance Act, 2018.

Officials stated that the duty revisions are aimed at aligning domestic taxation with rising global crude oil prices and preventing exporters from gaining undue advantage due to international price differences.

The duty on aviation turbine fuel (ATF) has also been increased, rising from Rs 29.5 per litre to Rs 42 per litre, while export duty on petrol remains unchanged at zero.

The changes come amid continued volatility in global oil markets following geopolitical tensions in West Asia. The conflict, which began on February 28 with military strikes involving the United States, Israel, and Iran, has disrupted energy supply chains and trade flows. A temporary two-week ceasefire agreement reached on April 8 has offered some relief but uncertainty persists.

The notification noted that the revisions were necessitated by prevailing global conditions and have come into force immediately, along with amendments to earlier orders issued on March 26, 2026.

Meanwhile, oil marketing companies have already increased ATF prices. Domestic carriers are now paying Rs 1,04,927.18 per kilolitre, marking an 8.56 per cent rise, while rates for foreign and non-scheduled operators have surged sharply to Rs 2,07,341.22 per kilolitre.

Market analysts suggest that the hike in ATF prices could provide short-term relief to oil marketing companies, even as it adds to cost pressures for airlines.