Overview
- The government raised the export duty on diesel to Rs 15.5 per litre from Rs 8.5 and on aviation turbine fuel to Rs 14.5 per litre from Rs 7.5, while cutting petrol export duty to Rs 2.5 per litre from Rs 4, with the revised rates effective July 16, 2026.
- The Finance Ministry said the fortnightly adjustments apply only to exports and do not change excise or duty rates for petrol and diesel sold for domestic consumption.
- Officials tied the move to a fresh jump in global crude that pushed Brent above $85 a barrel after renewed US–Iran clashes raised fears of supply disruption through the Strait of Hormuz.
- By raising levies on diesel and ATF, the government seeks to reduce export incentives for refiners and help preserve local supplies of transport and aviation fuels, which could ease short‑term pressure on domestic availability and prices.
- The step continues a pattern of fortnightly windfall reviews that began when export duties were first applied to diesel and ATF on March 27 and to petrol on May 16, reflecting India’s heavy reliance on imported crude (over 85%) and the risk a global price spike poses to the import bill and inflation.