India raises export tax on diesel to Rs 15.5/litre, jet fuel by Rs 7/litre as crude prices spike; petrol duty reduced

Global crude oil prices moved higher this week after fresh tensions between the United States and Iran raised concerns about supply disruptions. Brent crude briefly touched around USD 84.7 per barrel before easing slightly.

Written by: Analiza Pathak Edited by: Analiza Pathak

Published: July 16, 2026, 7:26 AM IST

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https://www.india.com/business/india-raises-export-tax-on-diesel-to-rs-15-5-litre-jet-fuel-by-rs-7-litre-as-crude-prices-spike-petrol-duty-reduced-8475281/ Copy

The government on Wednesday increased the windfall tax on exports of diesel and aviation turbine fuel (ATF) after global crude oil prices climbed due to the renewed conflict between the United States and Iran. According to Reuters, the export duty on diesel has been raised from Rs 8.5 per litre to Rs 15.5 per litre. The duty on aviation turbine fuel has also been increased from Rs 7.5 per litre to Rs 14.5 per litre. At the same time, the government reduced the export duty on petrol from Rs 4 per litre to Rs 2.5 per litre.

The changes come as crude oil prices have jumped following the latest escalation in tensions between the US and Iran. Earlier this week, US President Donald Trump announced a naval blockade of all Iranian ports. In response, Iran launched strikes targeting US infrastructure in the region, raising fears of further disruption to global oil supplies and pushing oil prices higher.

The latest changes are part of the government’s fortnightly review of the windfall tax framework.

Earlier this month, on July 1, state-owned oil marketing companies reduced ATF prices by about Rs 5 per litre after global crude prices eased as geopolitical tensions in West Asia subsided.

Crude oil prices rise as US-Iran conflict escalates

Global crude oil prices moved higher this week after fresh tensions between the United States and Iran raised concerns about supply disruptions. Brent crude briefly touched around $84.7 per barrel before easing slightly.

The latest jump in prices came after US President Donald Trump reimposed a naval blockade on Iranian ports. In response, Iran carried out strikes on US infrastructure in the region, further escalating the conflict.

The situation has also increased worries about the Strait of Hormuz, one of the world’s most important oil shipping routes. A large share of global crude oil passes through this narrow waterway, and any disruption there could affect oil supplies and keep prices under pressure.