India – India's Ministry of Finance has sharply increased export taxes on aviation turbine fuel (ATF) with immediate effect from 11 April 2026, raising the export duty to ₹42 per litre (approx. USD $0.50) from ₹29.5 per litre (approx. USD $0.35), as the government moves to redirect domestic jet fuel supply away from export markets and limit cost pressures on Indian carriers.

The April 11 revision marks the second upward adjustment to India's ATF export duties within a short period; the initial windfall tax on fuel exports was introduced on 26 March 2026, setting ATF duties at ₹29.5 per litre and diesel duties at ₹21.5 per litre (approx. USD $0.26).
Diesel export duties were also substantially raised in the latest revision, to ₹55.5 per litre (approx. USD $0.66) from ₹21.5 per litre — more than doubling within weeks — reflecting the scale and pace of the government's supply management response.
The government has indicated the export duties are not fixed and may be revised regularly in line with global oil price movements, meaning further adjustments are possible if Middle East-linked market instability continues.
To protect domestic airline operating economics from sharp short-term cost increases, Indian authorities have also introduced a temporary cap limiting monthly ATF price increases for domestic airlines to 25% for April 2026.
Jet fuel accounts for approximately 40% of airline operating costs; industry data cited in the source suggests ATF prices have nearly doubled since late February 2026 following the onset of the Middle East conflict, adding significant pressure on carriers' cost bases and, by extension, on flight training operators dependent on domestic fuel supply.

Source: India's Ministry of Finance

Indian Government Raises Jet Fuel Export Taxes for 2nd Time as Middle East Conflict Drives ATF Prices Higher

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