India Hikes Windfall Tax On Diesel, Jet Fuel As US-Iran Clash Rattles Crude

India has elevated the windfall taxes on the exports of fuels such as aviation turbine fuel and diesel by Rs 7 per litre each after surge in global crude oil prices as a direct result of fresh escalations in the US-Iran war. 

While the export duty linked to jet fuel and diesel have been raised, the levy on petrol has been scoot down to Rs 2.5 per litre from Rs 4 per litre. 

The export duty on diesel has been increased to Rs 15.5 per litre from Rs 8.5 per litre, while the aviation turbine fuel duty rose to Rs 14.5 per litre from Rs 7.5 per litre.

The revised rates will be effective July 16 as part of the fortnightly review of export duty, tracking global cues like rise in international fuel prices. 

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Meanwhile, oil prices have risen for fourth straight day amid continued tensions between both US and Iran, who've exchanged trade missiles and drones, triggering fears of supply disruptions in the Strait of Hormuz.

As of 9:52 AM, WTI crude oil rate stood 0.24% lower at $79.41 per barrel, while Brent crude was hovering around the $85 per barrel. 

Amid uncertainty over the West Asia crisis, Goldman Sachs noted Brent crude could exceed $110 a barrel in the fourth quarter if the recovery in Gulf exports continues to stall. However, it could fall into the $60s by the end of the year if tensions eased.