India raised windfall taxes on diesel and aviation turbine fuel exports by Rs 7 per litre each, while cutting petrol export duty, as crude prices surged on US-Iran tensions. Diesel export duty increased to Rs 15.5 per litre from Rs 8.5, ATF to Rs 14.5 from Rs 7.5, and petrol reduced to Rs 2.5 from Rs 4. Effective July 16.

The revision follows Brent crude hitting $84.7 a barrel after President Trump reimposed a naval blockade on Iranian ports and Iran retaliated, raising Strait of Hormuz supply concerns. Higher diesel refining margins from Russian supply disruptions also supported the hike.

India reviews windfall taxes fortnightly to capture refiners' extraordinary profits when international prices and margins spike. The move follows temporary bulk purchase restrictions lifted July 1, aimed at ensuring equitable availability amid global supply chain disruptions. Higher duties will moderate refiners' overseas gains and boost government revenue.