Fuel Export Duty Hike to Add ₹1,200 Crore Every Fortnight to Govt Revenue

The Indian government is set to generate an additional ₹1,000–1,200 crore every fortnight after increasing export duties on diesel and aviation turbine fuel (ATF). The move comes amid rising global crude oil prices and aims to manage domestic fuel supply while partially offsetting revenue losses from recent excise duty cuts.

The government more than doubled the export duty on diesel from ₹21.5 per litre to ₹55.5 per litre, while the levy on ATF was increased from ₹29.5 to ₹42 per litre. These duties, also known as windfall taxes, are intended to discourage excessive exports when global prices are high.

When crude oil prices surge, private refiners tend to export fuel to earn higher profits. By raising export duties, the government is making exports less attractive and ensuring adequate domestic availability of fuel.

Despite this additional revenue, the government is still facing losses due to earlier cuts in excise duty on petrol and diesel, which were implemented to control inflation and provide relief to consumers.

Officials have clarified that the primary goal of this move is not revenue generation but to prevent exporters from taking advantage of global price differences and to stabilize domestic fuel supply.

Do you think this move will help control fuel prices in India or increase pressure on companies?