New Delhi: The government on Saturday hiked export duty, or windfall tax, on diesel to Rs 55.5 per litre and on aviation fuel ATF to Rs 42 a litre.

The duty hikes would be applicable with immediate effect, the finance ministry said in a notification.

The government had, on March 26, imposed an export duty of Rs 21.50 a litre on diesel, and Rs 29.5 per litre on Aviation Turbine Fuel (ATF). The duties were levied to increase the domestic availability of the fuel amid the war in West Asia.

They were also aimed at not allowing exporters to take undue advantage due to price differences, as globally crude oil prices had risen since the beginning of the war.

On February 28, the United States and Israel launched military strikes against Iran, triggering sweeping retaliation from Tehran.

On April 8, Iran, the United States and Israel agreed on a two-week ceasefire in the war that tore across the Middle East and disrupted the global energy market.

Export duty on petrol continues to remain nil. 

Fuel supplies across the country remain stable

Fuel supplies across the country remain stable, and there is no need for panic buying despite ongoing geopolitical tensions in West Asia, Akshay Wadhwa, CEO of Jio-bp, said.

Speaking on the current fuel situation, he stated that adequate availability of petrol and diesel is being maintained through a well-functioning supply chain. He noted that while there were instances of panic buying in certain markets earlier, the situation has now normalised with no unusual rush at fuel stations.

"We have enough product in our supply chain. There is no issue as far as availability is concerned. The panic seen in some areas earlier has now subsided, and things are back to normal," he said.

On concerns around supply restrictions, the MD clarified that the company has not imposed any caps on fuel sales. However, he acknowledged that there could be isolated, localised disruptions due to logistical challenges, including long-distance transportation of fuel to certain regions.

"There is no restriction from our side. Our objective is to ensure that fuel reaches every consumer and to avoid panic in the market," he added.