India has introduced a windfall gains tax of ₹3 per litre on petrol exports, effective May 16, while cutting export levies on diesel to ₹16.5 per litre and aviation turbine fuel to ₹16 per litre. The Finance Ministry said road and infrastructure cess on petrol and diesel exports will be nil, with no change to duties for domestic consumption. The move follows West Asia conflict-linked volatility, aiming to boost domestic availability and curb exporters benefiting from global price gaps.
Indian aviation is bracing for margin squeeze as aviation turbine fuel costs stay elevated. Analysts warn airlines may respond by cutting discounts and raising fares, while some routes could be reviewed. If crude and ATF prices surge further, demand may soften. With connectivity at risk, the government may need to step in with support to keep key routes viable.
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Haj 2026 airfare will rise by about Rs 10,000 per pilgrim as global Aviation Turbine Fuel prices spike. The Haj Committee of India negotiated to keep the increase to roughly USD 100 per pilgrim, limiting the impact. Still, opposition leaders call the extra charge unjust, while the government says it protected pilgrims from a larger burden.
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