With an aim of preventing exporters from taking undue advantage due to price differences, the government has hiked the export duty, or windfall tax, on diesel to Rs 55.5 per litre. It has also increased the export duty on aviation fuel Aviation Turbine Fuel (ATF) to Rs 42 a litre. These duty hikes would be applicable with immediate effect. Earlier, the government had imposed an export duty of Rs 21.50 a litre on diesel, and Rs 29.5 per litre on ATF on March 26, 2026. Meanwhile, export duty on petrol continues to remain nil.

The duties were levied to increase domestic availability of the fuel amid West Asia conflict. The United States and Israel launched military strikes against Iran on February 28, 2026, triggering sweeping retaliation from Tehran and disrupting the global energy market. However, Iran, the United States and Israel agreed on a two-week ceasefire in the war on April 8, 2026.

Earlier, the Finance ministry had cut excise duty on petrol to Rs 3 a litre, from Rs 13 a litre earlier, while the levy on diesel had been slashed to nil from Rs 10 earlier, offering relief to oil marketing companies (OMCs) from a sharp spike in global crude oil prices triggered by the ongoing geopolitical conflict in the West Asia.