Government Increases Windfall Tax on Diesel and Aviation Fuel Amid Global Tensions

In a recent move, the Indian government has increased the export duties on diesel and aviation fuel, now set at Rs 55.5 and Rs 42 per litre, respectively. This decision, effective immediately, aims to bolster domestic fuel availability amidst escalating global tensions, particularly due to the ongoing conflict in West Asia. The government previously imposed these duties to prevent exporters from capitalizing on price differences caused by rising crude oil prices. The situation has been further complicated by military actions involving the United States, Israel, and Iran, which have disrupted the global energy market. Read on to learn more about the implications of these changes.

By Narendra Chaudhary Apr 11, 2026, 19:25 IST

Significant Hike in Export Duties Announced

New Delhi: On Saturday, the government announced an increase in the export duty, also known as windfall tax, on diesel to Rs 55.5 per litre and on aviation fuel (ATF) to Rs 42 per litre.

According to a notification from the finance ministry, these new duty rates will take effect immediately.

Previously, on March 26, the government had set an export duty of Rs 21.50 per litre on diesel and Rs 29.5 per litre on ATF. These measures were introduced to enhance the domestic supply of fuel in light of the ongoing conflict in West Asia.

The duties were also intended to prevent exporters from exploiting price disparities, as global crude oil prices have surged since the conflict began.

On February 28, military actions were initiated by the United States and Israel against Iran, leading to significant retaliatory measures from Tehran.

A ceasefire agreement was reached on April 8 between Iran, the United States, and Israel, lasting two weeks, amidst the ongoing turmoil in the Middle East that has impacted the global energy sector.