India Doubles Export Duties on Diesel and Jet Fuel Amid US-Iran Tensions

India's government has increased export duties on diesel and jet fuel by nearly doubling them. Effective July 16, the duty on diesel rose from ₹8.5 to ₹15.5 per litre, an 82% increase, while aviation turbine fuel levies jumped from ₹7.5 to ₹14.5 per litre.

The move is aimed at keeping a tight lid on domestic fuel prices and ensuring sufficient supply in the event of potential disruptions due to US-Iran tensions. India imports most of its crude oil and relies heavily on exports of refined petroleum products, which will now become more expensive.

Rising energy costs feed into inflation, making it harder for central banks to cut interest rates. This, in turn, affects risk asset prices, including those of cryptocurrencies.