Indian government raises diesel duties, hikes ATF levy with immediate effect

NEW DELHI — The Centre on Saturday increased excise duties on petroleum products, including high-speed diesel, with immediate effect, according to a notification issued by the Ministry of Finance.

The Union government has hiked the export duty or windfall tax on diesel by INR 34 per litre to INR 55.5 per litre from INR 21.5 per litre, with immediate effect.

As per the Gazette notification, the Special Additional Excise Duty on high-speed diesel has been raised to INR 24 per litre.

In a separate notification, the Union government also increased the Road and Infrastructure cess on diesel to INR 36 per litre under provisions of the Finance Act, 2018.

The Centre said the revisions were aimed at aligning domestic duties with rising global crude prices and preventing exporters from gaining undue advantage due to price differentials.

Meanwhile, duty on aviation turbine fuel (ATF) has also been raised from INR 29.5 per litre to INR 42 per litre, while export duty on petrol continues to remain nil.

Global oil markets have remained volatile following the escalation of conflict in West Asia.

On February 28, the US and Israel launched military strikes against Iran, triggering retaliatory actions from Tehran.

Subsequently, on April 8, Iran, the US and Israel agreed to a two-week ceasefire after the conflict disrupted energy markets and trade flows across the West Asia region.

The notification said the decision to revise duties was taken as circumstances warranted immediate action.

Further amendments have also been made to earlier notifications issued on March 26, 2026, revising applicable duty rates on petroleum products.

All the changes have come into force with immediate effect, the notification added.

Earlier, oil marketing companies hiked ATF prices.