The Finance Ministry on Saturday announced a sharp increase in export duty on diesel and aviation turbine fuel (ATF), while keeping the duty on petrol unchanged.According to the ministry, the export duty on diesel has been increased from Rs 21.5 per liter to Rs 55.5 per liter, while the export duty on ATF has been increased from Rs 29.5 per liter to Rs 42 per liter. The revised rates will be applicable with immediate effect.The move comes as the government is taking steps to prevent high fuel costs from being factored into airfares. Authorities are reviewing tax and duty measures to protect airlines and passengers amid volatile global oil prices.
The earlier duties, imposed on March 26, were aimed at boosting domestic fuel availability amid the conflict in West Asia and preventing exporters from widening the global price gap due to rising crude oil prices.Tensions escalated on February 28 when the United States and Israel launched military strikes on Iran, to which Tehran reacted strongly. A temporary pause occurred on April 8, when the three countries agreed to a two-week ceasefire after the conflict disrupted energy markets across the Middle East.Export duty on petrol remains zero.