India raises export duty on diesel, ATF

The oil & gas sector, particularly refiners, will face margin pressure on their export operations. This policy aims to prioritize domestic supply and government revenue over export profitability for these companies.

Maintain a bearish bias on refining and marketing companies, looking for short opportunities or reducing long positions, especially for those with significant export exposure.

For Indian markets, this story mainly matters for IOC, MRPL and the Oil & Gas, Refineries pocket. The current signal is bearish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Significant refiner and exporter of petroleum products; increased export duties will impact export margins. Refiner with export operations; higher export duties will reduce profitability. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •India has significantly increased export duties on diesel and aviation turbine fuel (ATF).
• •The move aims to boost government revenue and ensure sufficient domestic fuel supply.
• •Export duty on diesel now stands at ₹55.50 per litre.
• •Export duty on ATF now stands at ₹42 per litre.
• •These changes are a response to rising global crude oil prices following the Iran war.