India has raised windfall taxes on exports of diesel and aviation turbine fuel (ATF) by Rs seven per litre, increasing the diesel export duty to Rs 15.5 per litre from Rs eight point five per litre and the ATF levy to Rs 14.5 per litre from Rs seven point five per litre. The government reduced the export duty on petrol from Rs four per litre to Rs two point five per litre. The revised rates will be effective from July 16.

The adjustments formed part of the government's fortnightly review of windfall taxes, which are tied to international fuel prices and refining margins. Officials indicated the latest revision responded to a jump in crude oil prices after renewed tensions in West Asia and concerns over disruptions in the Strait of Hormuz. The move is aimed at moderating export incentives while reflecting shifts in global market conditions.

Oil prices rose for a fourth straight day as reports of missile and drone exchanges between US and Iran heightened concerns about supply disruption. Brent crude futures climbed 33 cents, or zero point four per cent, to $85.28 a barrel, while US West Texas Intermediate futures rose 42 cents, or zero point five per cent, to $80.02 a barrel. Market participants cited the geopolitical developments and port disruptions as factors behind the gains.

The government said windfall duties will continue to be reviewed periodically and adjusted to balance domestic availability and export parity. Analysts noted that raising levies on diesel and ATF exports increases the cost for overseas buyers and could reduce outbound shipments, while the modest cut in the petrol duty may ease export pricing. The changes take effect on July 16 and follow the recent crude price movements.