In a government notification on Saturday, India’s finance ministry increased the tax on diesel exports to 55.5 rupees per litre from 21.5 rupees per litre, and on exports of aviation turbine fuel to 42 rupees per litre from 29.5 rupees per litre, effective immediately, News.Az reports, citing Reuters.
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India also last month cut excise duty on petrol and diesel by 10 rupees ($0.11).
Separately, to control a rise in airfares, it has also capped a monthly increase in aviation turbine fuel prices for domestic airlines at 25% in April. Jet fuel accounts for up to 40% of an airline’s expenses.
Global oil prices have surged past $100 per barrel as the flow of oil through the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, remains heavily restricted due to the U.S.-Iran war.
India, which ranks among the top five refining nations globally and is also the world’s third-biggest oil importer and consumer, relies heavily on overseas supplies.
