Diesel Price: In light of the ongoing crisis in the Middle East, the central government has made a significant decision regarding diesel today. The export duty on diesel has been raised from Rs 21.5 to Rs 55.5 per liter. Furthermore, the export duty on jet fuel has been increased to Rs 42 per liter.
The increase in export duty on diesel was implemented on March 26
According to a notification from the Finance Ministry, this duty hike will take effect immediately. Previously, on March 26, the government had set an export duty of Rs 21.50 per liter on diesel and Rs 29.5 per liter on ATF. These duties were introduced to enhance fuel availability in the domestic market amid the ongoing conflict in West Asia. The aim is to prevent exporters from exploiting the disparity between international and domestic prices, especially as global crude oil prices have surged sharply since the onset of the war.
What prompted the government to make this decision?
The war in the Middle East has led to a significant rise in crude oil prices. Private refineries were profiting immensely by exporting oil rather than selling it at domestic stations. The increased duty will raise export costs and help alleviate the fuel crisis within the country. However, this decision will likely result in losses for oil companies and have a considerable effect on their operations.
How will this affect the general public?
The substantial rise in export duty on diesel and jet fuel (ATF) will not have a direct effect on the general public. This tax applies to exports, meaning that diesel prices at petrol stations in India will not rise as a consequence.
It’s important to note that following the military strikes by the US and Israel against Iran on February 28, Tehran initiated extensive retaliatory measures. Nevertheless, on April 8, Iran, the US, and Israel reached an agreement for a two-week ceasefire, temporarily halting the disruptions in West Asia and the global energy market. Export duties on gasoline remain unchanged at zero.
The duty on export of diesel has been increased from Rs 21.5 per litre to Rs 55.5 per litre. Duty on ATF (Aviation Turbine Fuel) has been increased from Rs 29.5 per litre to Rs 42 per litre. Export duty on petrol continues to remain Nil: Finance Ministry pic.twitter.com/75qNV3mCJa
— ANI (@ANI) April 11, 2026
