Government Tightens Export Duties on Diesel and ATF to Boost Revenue and Domestic Supply

On Saturday, April 11, 2026, the central government increased export duties on domestically produced diesel and aviation turbine fuel (ATF), keeping the duty on petrol at zero. Export duty is the tax charged on goods sent outside the domestic territory.

As per the introduced changes, diesel produced inside the country has been increased from Rs 21.5 per litre to Rs 55.5 per litre, while from Rs 29.5 per litre to Rs 42 per litre for domestically-produced aviation turbine fuel (ATF).

Along with this move, the government has also increased certain taxes on high-speed diesel, including a higher special additional excise duty (SAED) at Rs 24 per litre and a hike in the road and infrastructure cess (RIC) to Rs 36 per litre.

The objective behind this move is to rationalise rates on petroleum products to help the government increase its revenue sources and ensure that enough supply remains available inside the domestic territory.

By making exports pricier, the government can discourage excessive selling outside the country and help control prices inside the country. This will help support local industries in India and reduce trade imbalances.