India raises export duties on petrol, diesel, jet fuel

India has significantly increased export taxes on key refined fuels, a move designed to bolster domestic fuel supplies amid ongoing volatility in global oil markets driven by Middle East tensions. The new duties, which took effect on August 3, 2026, sharply raise the cost for Indian refiners to sell petrol, diesel, and aviation turbine fuel abroad.

The export duty on petrol was raised to 3.5 rupees per litre from 2.5 rupees. The tax burden on diesel exports increased substantially to a combined 25.5 rupees per litre, up from 15.5 rupees per litre just two weeks prior. This total comprises a 24-rupee per litre export duty and an additional 1.5-rupee infrastructure levy. The duty on aviation turbine fuel, or jet fuel, was lifted to 22 rupees per litre from 14.5 rupees.

The government reviews these windfall taxes every fortnight, adjusting them based on average international crude oil and refined product prices. The policy is a recurring tool intended to capture extraordinary refinery profits during periods of high global prices and to discourage excessive exports that could strain domestic availability. India, the world's third-largest oil importer and a major refining hub,...