The Government of India has increased export duties on diesel from Rs 21.50 to Rs 55.50 per litre, while the duty on ATF increased from ₹29.50 to ₹42 per litre with immediate effect.The decision was announced by the Ministry of Finance on 11 April. As per the Hindustan Times, the move targets private refiners and aims to ensure sufficient domestic availability of these fuels amid rising international oil prices.According to The Hindu, the Finance Ministry issued a notification stating that the revised export duties would be applicable immediately. The hike is described as a windfall tax, intended to address the current market conditions and prevent shortages in the domestic market.The government initially imposed these duties on 27 March to ensure domestic availability, especially as international prices surged due to geopolitical tensions in West Asia.Coverage revealed that private refiners were exporting more fuel to benefit from higher international prices, while rationing sales in the less profitable domestic market. State-run oil marketing companies, which hold about 90 percent of the domestic market share, reportedly faced significant under-recoveries on petrol and diesel sales during this period.Industry sources indicated that some private retailers increased pump prices by Rs 3-5 per litre to discourage domestic sales, while others limited the quantity of fuel dispensed to each customer daily, as analysis showed. Most private refiners, however, focused on exporting petroleum products to maximise profits amid the international price surge.“The levies have been increased with immediate effect according to the existing circumstances that ‘render it necessary to take immediate action’,” the Finance Ministry stated in its notification.State-run oil marketing companies reportedly raised aviation turbine fuel prices for both domestic and foreign airlines by over 100 percent on 1 April 2026, before moderating the increase to an 8.6 percent hike for domestic routes later in the day as reporting indicated. This adjustment aimed to protect consumers from a sharp rise in domestic airfares.The government’s decision to raise export duties comes amid ongoing volatility in global oil markets, with the stated objective of maintaining adequate domestic supplies and stabilising prices as details emerged. The Finance Ministry’s notification emphasised the need for immediate action in light of prevailing circumstances.International developments, such as the war in West Asia, have contributed to the surge in oil prices, making exports more lucrative for private refiners according to recent updates. The government’s intervention is intended to balance the interests of domestic consumers and the fuel industry.“Private fuel retailers preferred selling in overseas market because dominant public sector fuel retailers froze pump prices of automobile fuels in the country despite incurring huge under-recoveries on petrol and diesel,” industry sources said.The revised export duties are expected to impact the profitability of private refiners and may influence their export strategies in the coming months as further information confirmed. The government has not announced any timeline for reviewing or revising these duties.Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.