The Centre raised the export duty on diesel by 50 paise per litre and on aviation turbine fuel (ATF) by ₹3 per litre, extending curbs on fuel exports imposed during the West Asia crisis to safeguard domestic supplies. 

Under the revised rates effective June 16, the special additional excise duty (SAED) on diesel exports has been increased to ₹14 per litre from ₹13.5 per litre, while the levy on ATF exports has been raised to ₹12.5 per litre from ₹9.5 per litre. The export duty on petrol remains unchanged at ₹1.5 per litre.

The latest revision marks the first increase in export levies in recent weeks and comes nearly three months after the government reintroduced windfall taxes on petroleum exports amid disruptions in global energy markets triggered by the West Asia conflict.

According to a notification issued by the finance ministry, there is no change in the duty applicable to petrol and diesel sold in the domestic market. The revised rates will be applicable from June 16.

The export duties were first imposed on March 27 to discourage exports and ensure adequate domestic availability of petroleum products as geopolitical tensions pushed up global energy prices and disrupted fuel supply chains. Petrol exports were brought under the levy framework on May 16.

The government reviews the special additional excise duty every fortnight based on average international prices of crude oil and petroleum products, including petrol, diesel and ATF.

The windfall tax mechanism is aimed at preventing exporters from benefiting disproportionately from elevated international fuel prices while ensuring sufficient domestic supplies during periods of market volatility.

When the levies were first introduced in March, export duties were fixed at ₹21.5 per litre on diesel and ₹29.5 per litre on ATF. At the time, the government estimated revenue collections of around ₹1,500 crore over a two-week period.

The duties were imposed after the West Asia conflict triggered a sharp rise in crude oil prices and raised concerns over fuel availability. The government said the measures were intended to increase domestic availability of petroleum products by disincentivising exports.

The special additional excise duty is a flexible levy imposed on select petroleum products and revised periodically in line with global market conditions.

Windfall taxes were first introduced during the Russia-Ukraine conflict in 2022 amid soaring energy prices and were subsequently withdrawn in 2024 before being reintroduced this year following fresh disruptions in global energy trade.