India has increased export taxes on diesel and aviation turbine fuel (ATF) while lowering the levy on gasoline exports, as renewed US-Iran hostilities tighten global fuel markets.
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India increased taxes on exports of diesel and aviation turbine fuel as the collapse of the US-Iran interim peace deal and renewed hostilities have choked oil flows again tightening global fuel markets.The levy on diesel export has been raised to ₹15.5 a litre from ₹8.50 for the second half of July, according to a finance ministry notification. Taxes on exports of gasoline were lowered to ₹2.5 a litre from ₹4, and that on jet fuel was raised to ₹14.5 a litre from ₹7.50.The higher taxes could curb exports just as shipments from India, one of Asia’s largest fuel suppliers, are headed for their highest level since September. Exports of products, such as diesel and gasoline, in July are seen about a fifth higher from a year earlier as refiners are cashing in on strong profit margins amid acute supply tightness in the US and Europe. India reviews the taxes every fortnight based on average international prices for crude oil and refined products during the preceding period. The mechanism allows New Delhi to adjust duties in response to changes in global energy markets while prioritizing local fuel availability.India, the world’s fourth-largest refining hub, imports more than 85% of its crude oil requirement while exporting large volumes of refined fuels.More stories like this are available on bloomberg.comPublished on July 16, 2026
