Govt raises windfall tax on diesel, ATF amid global oil volatility

The Centre on Saturday increased the windfall tax on fuel exports, raising the duty on diesel to Rs55.5 per litre and on aviation turbine fuel (ATF) to Rs42 per litre, with immediate effect, according to a notification issued by the Ministry of Finance.According to information,the latest revision marks a sharp increase from the duties imposed on March 26, when export tax on diesel was set at Rs21.50 per litre and on ATF at Rs29.5 per litre. The move comes amid continued volatility in global crude oil prices and aims to ensure adequate domestic availability of fuel.
The government had initially imposed these duties to prevent exporters from capitalising on higher international prices, especially as crude markets surged following geopolitical tensions in West Asia. Officials indicated that the hike is intended to stabilise domestic supply and curb excessive outbound shipments.The energy markets have remained under pressure since February 28, when the United States and Israel launched military strikes on Iran, triggering retaliatory actions and disrupting global supply chains. Although a temporary two-week ceasefire was agreed upon on April 8, uncertainty continues to weigh on oil prices.Despite the hike in duties on diesel and ATF, export tax on petrol remains unchanged at zero. The government’s calibrated approach reflects its attempt to balance domestic fuel needs while navigating an uncertain global energy landscape.