India has increased windfall taxes on diesel and aviation turbine fuel exports after global oil prices rose sharply due to growing tensions between the United States and Iran. The government reduced the duty on petrol exports at the same time.
The duty on diesel exports has been raised to ₹15.5 per litre from ₹8.5 per litre. Aviation turbine fuel export duty has been lifted to ₹14.5 per litre from ₹7.5 per litre. Petrol export duty has been cut to ₹2.5 per litre from ₹4 per litre. These changes take effect from July 16, 2026.
There is no change in duties on petrol and diesel sold within India. The government first imposed windfall taxes on diesel and aviation turbine fuel exports in March 2026 and extended them to petrol in May. These rates are reviewed every two weeks to balance domestic supply with export incentives.
The latest move is aimed at ensuring adequate domestic availability of petroleum products and discouraging exports when global prices rise. Exporters of diesel and aviation turbine fuel will face higher costs and reduced margins. Domestic consumers will not be affected as local duty rates remain unchanged.
This step highlights India’s focus on energy security and its strategy to protect domestic fuel supplies during international crises.
