Oil
India cuts diesel export tax amid global fuel shortage
India has nearly halved its diesel export duty while significantly increasing the levy on gasoline shipments.
Key points
- Diesel export tax reduced from 16 rupees to 8.5 rupees per liter.
- Gasoline export duty increased fivefold to 2.5 rupees per liter.
- Policy adjustments are made fortnightly to balance domestic and international markets.
What happened
According to OilPrice.com, India has adjusted its fuel export levies, nearly halving the duty on diesel while raising the tax on gasoline exports. The changes take effect on October 16.
The export duty on diesel was lowered from 16 rupees ($0.17) per liter to 8.5 rupees ($0.09) for the upcoming two-week period. Conversely, the gasoline export levy rose to 2.5 rupees ($0.026) per liter from 0.5 rupees, while the duty on jet fuel remained steady at 10.5 rupees ($0.11) per liter.
Why it matters
OilPrice.com reported that the lower diesel tax could encourage higher volumes to reach the international market, which faces a persistent fuel crunch and price volatility. India reviews these duties every fortnight to respond to domestic and global conditions.
The measures originate from policy changes introduced in March following disruptions connected to the Middle East crisis and transit through the Strait of Hormuz. Despite domestic pressures, Indian Oil Minister Hardeep Puri stated in September that the country remains committed to supplying global markets, noting that refining capacity continues to expand.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
13.1% of India’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
