India Raises Export Duty on Diesel and ATF to Secure Domestic Fuel Supply

The Union government has significantly raised export duties on diesel and Aviation Turbine Fuel (ATF), signaling a firm policy shift to safeguard domestic fuel availability amid mounting global energy market pressures. According to a gazette notification issued by the Finance Ministry on April 11, the export duty on diesel has been hiked from ₹21.5 per litre to ₹55.5 per litre, while the duty on ATF has been increased from ₹29.5 per litre to ₹42 per litre. The revised rates came into immediate effect, while export duty on petrol continues to remain at zero. Government officials stated that the sharp increase is intended to discourage excessive fuel exports by refiners and to ensure that domestic consumers and industries have access to adequate supplies during a period of heightened volatility in global oil markets. By making fuel exports significantly more expensive, the government hopes to redirect refinery output toward meeting India's internal demand rather than chasing higher margins in international markets. The backdrop to this decision is a sharp rise in global crude prices, which have climbed beyond $100 per barrel. Escalating geopolitical tensions and disruptions to critical oil supply routes in West Asia have rattled energy markets worldwide. Of particular concern is the Strait of Hormuz, a vital maritime corridor through which a