India Slashes Diesel Export Tax Amid Global Fuel Crunch
India has halved its export duty on diesel and hiked the levy on gasoline exports fivefold, effective October 16.
India has nearly halved its export duty on diesel for the next two weeks while hiking the levy on gasoline exports fivefold, with the changes effective October 16, according to OilPrice. The lower diesel export levy could encourage additional supply to the international market, which is facing a diesel crunch and price shocks. Meanwhile, the hike in the gasoline export duty appears intended to discourage gasoline exports.
India reviews its export duty policy every fortnight to account for prevailing domestic and international market conditions, including supply and prices. These duties were initially introduced in March at the height of the Middle East crisis when supplies stopped moving through the Strait of Hormuz. Back then, India moved to protect its fuel supply and consumers by reducing domestic taxes on gasoline and diesel and imposing a levy on fuel exports.
Instant Telegram notifications for large on-chain moves.
Tax Revisions and Market Rates
For the next two weeks starting October 16, excise duties on gasoline and diesel sold in the domestic market remain unchanged, but export duties have been adjusted. The gasoline export duty was hiked to 2.5 rupees ($0.026) per liter, up from 0.5 rupees in the first half of October. The export duty on jet fuel was left unchanged at 10.5 rupees, or $0.11, per liter.
The export levy on diesel was slashed from 16 rupees ($0.17) per liter to 8.5 rupees, or $0.09, for the next two weeks. Amid the global diesel crisis, Oil Minister Hardeep Puri stated last month that the country would keep exporting diesel to help meet global demand and ease the fuel crunch, noting that refining capacity continues to expand.
Key facts
- India halved its diesel export duty from 16 rupees ($0.17) to 8.5 rupees ($0.09) per liter.
- Gasoline export duty was hiked fivefold to 2.5 rupees ($0.026) per liter, effective October 16.
- Export duty on jet fuel remained unchanged at 10.5 rupees ($0.11) per liter.
- India reviews its export duty policy every fortnight based on domestic and international market conditions.
Source: oilprice.com
This article is for information only and is not investment advice. BullishMarketCap news is produced with AI assistance from public sources and reviewed by our editors; see our editorial policy. Spotted an error? Tell us.
