The Centre today announced an increase in export duties on key petroleum products, hiking the levy on high-speed diesel to Rs 55.5 per litre and on aviation turbine fuel (ATF) to Rs 42 per litre, according to a fresh gazette notification issued by the Ministry of Finance.
Officials said the revised rates will come into force with immediate effect.
Diesel duty more than doubled
As per the notification, the Eighth Schedule of the Finance Act 2002 has been revised, significantly increasing the burden on diesel exports. The total export duty on high-speed diesel now stands at Rs 55.5 per litre, up from Rs 21.5 per litre earlier.
The hike includes an increase in both the Special Additional Excise Duty and the Road and Infrastructure Cess, with the government stating it was necessary to take immediate action.
ATF levy also increased
The export duty on aviation turbine fuel has also been raised to Rs 42 per litre from the earlier Rs 29.5 per litre, as part of the same set of amendments.
The notification formally revises the applicable rates, reflecting the government’s broader effort to tighten control over fuel exports.
In contrast, export duty on petrol remains unchanged at zero, offering no additional burden on petrol exporters.
Push to safeguard domestic supply
The government indicated that the decision is aimed at ensuring adequate domestic availability of fuels amid shifting global energy trends. The move is also intended to prevent exporters from benefiting disproportionately due to international price differentials.
Officials emphasised that the changes were made in “public interest” as market conditions continue to evolve. They also noted that the notifications were issued under provisions of the Central Excise Act, 1944 and relevant Finance Acts. Each order underscored the urgency of the situation, stating that circumstances warranted immediate intervention.