India has sharply increased export taxes on aviation turbine fuel (ATF), as the government aims to keep more fuel within the country and limit rising costs for local airlines.
According to a notification issued by India’s Ministry of Finance on April 11, 2026, the export tax on jet fuel has been increased to 42 rupees per litre (about $0.50), up from 29.5 rupees per litre (about $0.35), with immediate effect. At the same time, export duties on diesel were also significantly raised, to 55.5 rupees per litre (approximately $0.66) from 21.5 rupees per litre (approximately $0.26).
The latest increase marks the second adjustment in export duties within a short period, reflecting the rapid evolution of the situation. India first introduced the so-called windfall tax on fuel exports on March 26, setting duties at 21.5 rupees per litre (around $0.26) for diesel and 29.5 rupees per litre (approximately $0.35) for aviation turbine fuel.
With the latest revision, diesel duties have now more than doubled, while ATF taxes have also been raised significantly, highlighting the government’s intent to limit exports and redirect supply toward the domestic market.
The government has said these duties are not fixed and may be updated regularly based on global oil prices, meaning further changes could follow if market instability continues. India has also adjusted other fuel-related charges, including increases in excise components and infrastructure levies on diesel, as part of a wider fiscal and supply management strategy.
The rapid policy response highlights the scale of disruption caused by the ongoing crisis in the Middle East. Since late February, global jet fuel prices have risen sharply, with industry data suggesting ATF prices have nearly doubled in just a few weeks, adding more pressure on airlines.
Jet fuel remains one of the largest expenses for most carriers, accounting for around 40% of total operating costs. In an attempt to avoid a sharp pass-through to ticket prices, Indian authorities have also introduced a temporary cap limiting monthly increases in ATF prices for domestic airlines to 25% for April.
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