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India Raises Diesel, Jet Fuel Export Taxes as Crude Prices Surge

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The Indian government on Wednesday issued an order raising export duties on diesel and aviation turbine fuel effective July 16.

The development comes following the sharp rally in global crude prices triggered by escalating hostilities in the conflict between the US and Iran in the Middle East.

According to the government order on Wednesday, the export tax on diesel will increase to 15.5 Indian rupees ($0.16) per liter, up from 8.5 rupees, while the duty on aviation turbine fuel will nearly double to 14.5 rupees per liter from 7.5 rupees.

Additionally, the levy on petrol, or gasoline, was reduced, according to the order. The export duty on petrol will be reduced to 2.5 rupees per liter, down from 4 rupees.

The revisions come as oil markets have been jolted by the intensifying conflict between Washington and Tehran.

Crude prices climbed this week after the US reimposed a naval blockade on all Iranian ports and Iran responded with retaliatory strikes on US infrastructure facilities in the region.

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