Equity

The government also raised the export duty on diesel to Rs 55.5 per litre from Rs 21.5 per litre, while petrol exports continue to remain exempt.

The decision comes as authorities consider steps to prevent rising fuel costs from pushing up airfares. Officials are reviewing taxes and fees to support both airlines and passengers during a period of volatile oil prices. The revised rates were announced by the Finance Ministry through an official notification.

The windfall tax is used to limit extra profits earned by exporters when global prices are much higher than domestic rates. India is a net exporter of ATF due to its strong refining capacity, so changes in export duties directly impact both refiners and airlines.

Global crude oil prices have surged in the wake of Iran conflict, with supply concerns and disruptions around the Strait of Hormuz adding pressure to the market.