Centre sharply hikes diesel excise, raises ATF levy to align with global crude surge

NEW DELHI: The Centre on Saturday increased excise duties on petroleum products, including high-speed diesel, with immediate effect, according to a notification issued by the Ministry of Finance.

The Union government has hiked the export duty or windfall tax on diesel by Rs 34 per litre to Rs 55.5 per litre from Rs 21.5 per litre, with immediate effect.

As per the Gazette notification, the Special Additional Excise Duty on high-speed diesel has been raised to Rs 24 per litre.

In a separate notification, the Union government also increased the Road and Infrastructure cess on diesel to Rs 36 per litre under provisions of the Finance Act, 2018.

The Centre said the revisions were aimed at aligning domestic duties with rising global crude prices and preventing exporters from gaining undue advantage due to price differentials.

Meanwhile, duty on aviation turbine fuel (ATF) has also been raised from Rs 29.5 per litre to Rs 42 per litre, while export duty on petrol continues to remain nil.

Global oil markets have remained volatile following the escalation of conflict in West Asia. (IANS)

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