New Delhi, Apr 11 (PTI) 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 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. PTI JD HVA

Windfall tax on diesel and aviation fuel rises to curb export gains and support domestic supply. Export duty, described as a windfall tax, was increased immediately on diesel and aviation turbine fuel to raise domestic availability of these fuels and prevent exporters from benefiting from widened global price differences during the West Asia conflict. The duty on petrol remained nil. The revised duty structure replaced earlier lower rates imposed on diesel and ATF, with the new rates taking effect at once under the finance ministry notification.