India Raises Windfall Taxes on Diesel and Jet Fuel Exports

The Ministry of Finance of India increased windfall taxes on the export of diesel and aviation turbine fuel (ATF) effective July 16, 2026. According to a government notification, the export duty on diesel rose from 8.5 to 15.5 rupees per litre, and the ATF duty increased from 7.5 to 14.5 rupees per litre. In contrast, the levy on petrol exports was reduced from 4 to 2.5 rupees per litre.

These adjustments to the Special Additional Excise Duty (SAED) rates follow a spike in global oil prices. The volatility was triggered by intensifying hostilities between the United States and Iran, occurring after President Donald Trump reimposed a naval blockade on all Iranian ports and Iran launched retaliatory strikes against U.S. infrastructure in the region.

The Indian government revises these rates on a fortnightly basis. This mechanism is intended to ensure the availability of petroleum products for domestic consumption and maintain alignment with international crude prices and refining margins.