- Diesel export duty doubled, now Rs 55.5 per litre.
- Jet fuel (ATF) export duty increased to Rs 42.
- Fee increased to maintain domestic supply.
- The impact of the Middle East conflict and rising oil prices.
The central government has announced a major decision on Saturday (April 11, 2026) regarding petrol, diesel and jet fuel. The government has decided to more than double the export duty on diesel from Rs 21.5 per liter to Rs 55.5 per litre. At the same time, the export duty on jet fuel (Aviation Turbine Fuel/ATF) has been increased from Rs 29.5 per liter to Rs 42 per liter.
This increase in export duties made by the government is being considered a big blow for the oil companies. However, the government has not yet made any changes in the export duty of petrol. This charge on petrol has been kept zero as before.
Why did the government change the export duties?
According to news agency ANI, the reason behind this increase in export duties is that the government does not want to bear the burden of inflation on the domestic prices of oil, hence the export duty rates have been changed, so that the availability of petrol, diesel and aviation turbine fuel (ATF) remains at the domestic level. The Indian government has taken this decision amid instability in energy prices due to conflict in the Middle East. Where the price of Brent crude oil remains around $100 per barrel.
Government changes duties based on market needs
This step taken by the central government is a part of the broader windfall tax structure, under which the government changes the duties imposed on oil exports from time to time. The objective behind this change is to maintain a balance between the profits of the refiners as well as the needs of the local market. However, this step of the government is a big blow to the oil companies.
This decision of the government may affect the business of oil companies. This may have a greater impact on the business of those who supply refined diesel and jet fuel to other countries. However, at present petrol has been kept out of the decision to change these duties.
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