India nearly doubles export duties on diesel and jet fuel as US-Iran tensions rattle oil markets

India just made it a lot more expensive for its refiners to sell diesel and jet fuel abroad. Effective July 16, the export duty on diesel jumped from ₹8.5 to ₹15.5 per litre, an 82% increase. Aviation turbine fuel got a similar treatment, with levies climbing from ₹7.5 to ₹14.5 per litre, nearly doubling overnight. What’s driving the move Escalating tensions between the US and Iran have put international oil markets on edge, raising the specter of supply disruptions in one of the world’s most critical energy corridors. India, which imports the vast majority of its crude oil, is taking no chances. India has been running this playbook since 2022, when it first introduced variable export levies and windfall taxes on petroleum products. The government adjusted similar duties as recently as April 2026, and earlier in the year as well. This isn’t a one-off panic move. It’s a recurring tool in New Delhi’s energy policy toolkit, deployed whenever global conditions get sufficiently volatile. India is the world’s third-largest oil importer and a major hub for refined petroleum exports. When India decides to keep more fuel within its borders, the global supply of refined products tightens. Wh...