The Centre has announced an immediate increase in excise duties on petroleum products, particularly high-speed diesel, according to a notification from the Ministry of Finance. The export duty or windfall tax on diesel has surged by Rs 34 per litre to Rs 55.5 per litre, up from Rs 21.5 per litre. Additionally, the Special Additional Excise Duty on high-speed diesel has been upped to Rs 24 per litre as per the Gazette notification.
In a separate move, the Union government has also raised the Road and Infrastructure cess on diesel to Rs 36 per litre under the provisions of the Finance Act, 2018. These revisions are aimed at aligning domestic duties with the escalating global crude prices and preventing exporters from exploiting price differentials. Moreover, the duty on aviation turbine fuel (ATF) has been increased from Rs 29.5 per litre to Rs 42 per litre, while the export duty on petrol remains unchanged.
The decision to revise duties comes amidst the backdrop of volatile global oil markets, triggered by the conflict escalation in West Asia. Following military strikes between the US, Israel, and Iran, a two-week ceasefire was agreed upon on April 8 to stabilize energy markets and trade flows in the region. The Centre emphasized that these revisions were necessary immediate actions, with amendments to earlier notifications issued on March 26, 2026, now in effect.
