The move aims to curb fuel exports as global supply tightens due to renewed Middle East shipping disruptions.
India raised export taxes on diesel and jet fuel to nearly double their previous rates, effective July 16 for two weeks. The Finance Ministry adjusted duties in response to tightening global fuel markets, exacerbated by the resurgence of the Hormuz crisis, which threatens supply routes.
The country reviews export duties fortnightly, factoring in domestic and international market conditions, including price fluctuations and supply constraints. The latest hike follows a period of elevated fuel costs and geopolitical risks disrupting energy trade.
No immediate market reaction was specified, but the tax increase could pressure refining margins and limit export volumes from India, a key regional supplier.