India has increased the windfall tax on petrol exports while simultaneously lowering levies on diesel and aviation turbine fuel (ATF), effective August 3.
The Finance Ministry’s order raises the charge on petrol to ₹3.5 per litre from ₹2.5 per litre, while reducing the diesel levy to ₹24 per litre.
These adjustments alter the cost structure for Indian refiners, who are major global suppliers of refined products.
The policy shift directly impacts cross-border arbitrage opportunities.
Higher petrol export costs reduce the incentive for Indian refineries to ship gasoline abroad, potentially tightening global supply in key markets.
Conversely, lower taxes on diesel and ATF make these products more competitive in international trade, likely boosting export volumes for those grades.