New Delhi: The Union finance ministry on Monday raised the export duties on diesel and jet fuel to ₹14 per litre and ₹12.5 per litre, from ₹13.5 and ₹9.5, respectively.
The revised rates come into effect from Tuesday. The levy on the export of petrol has, however been kept unchanged at ₹1.5 per litre.
A gazette notification from the department of revenue under the ministry of finance on Monday noted that the special additional excise duty (SAED) on diesel and aviation turbine fuel (ATF), post the revision, on export of diesel will be ₹14 per litre and on aviation turbine fuel will be ₹12.5 per litre.
SAED is a flexible tax imposed by the government on select products, mainly domestic crude oil and exported petroleum fuels such as petrol, diesel and ATF.
The export levies were originally introduced on 27 March in a bid to ensure domestic availability of petroleum products by disincentivizing exports in the backdrop of the West Asia crisis.
The rates are revised every fortnight based on the average international prices of crude oil, petrol, diesel and ATF during the period since the last review.
The upward revision in the levy comes despite the recent ease in global crude prices. Brent is currently trading around $83 per barrel, compared with around $95 a fortnight ago. Prices slumped nearly 5% on Monday after the announcement of a peace deal between the US and Iran.
Experts remain concerned over the longevity of the peace deal and stability in West Asia. Even if diplomatic momentum holds, analysts warn global crude flows are unlikely to normalize quickly, limiting the scope for price recovery.
The Strait of Hormuz, which carries about 20% of global oil and gas trade, has been heavily disrupted since the conflict escalated. The blockade of the strait—first imposed by Iran after the war began in late February, followed by a US naval blockade in April—severely disrupted global energy flows.
While easing restrictions would support shipping volumes, production-side constraints remain binding. Damage to refining infrastructure and gas facilities means output cannot return to normal quickly, even if maritime routes reopen.
When the government had imposed windfall levies on 27 March, with export duty on diesel at ₹21.5 a litre and on ATF at ₹29.5 a litre, it had estimated revenue collection of about ₹1,500 crore in two weeks. These “windfall” levies were first imposed in 2022 during the peak of the Russia-Ukraine war and were withdrawn in 2024.