India's Finance Ministry has announced an increase in the windfall tax on aviation turbine fuel (ATF) exports to ₹42 per litre, up from ₹29.5 per litre. The export duty on diesel has also been raised significantly to ₹55.5 per litre from ₹21.5 per litre. This decision comes as the country faces rising global crude oil prices, exacerbated by geopolitical tensions, including the Iran conflict and supply disruptions around the Strait of Hormuz. The government aims to prevent increasing fuel costs from pushing airfares higher, as airlines are already struggling with elevated fuel expenses. While petrol exports remain exempt from these new duties, the adjustments in ATF and diesel taxes are expected to directly impact both refiners and airlines, given India's status as a net exporter of ATF due to its robust refining capacity. Authorities are actively reviewing other taxes and fees to provide support during this period of volatility in oil prices.