India nearly halves diesel export duty — OilPrice

India has nearly halved its export duty on diesel from October 16 — from 16 rupees to 8.5 rupees per litre — for the next two weeks. At the same time, the country raised the duty on gasoline exports from 0.5 to 2.5 rupees per litre, OilPrice reports.

New rates for fuel exports

The reduced diesel rate will be about $0.09 per litre, compared with the previous $0.17. The increased gasoline duty equals approximately $0.026 per litre. The export duty on jet fuel was not changed: it remained at 10.5 rupees, or about $0.11 per litre.

Excise tax rates for gasoline and diesel sold on the domestic market were not reviewed for this period. India adjusts its export duty policy every two weeks, taking into account conditions in domestic and international markets, including supply volumes and prices.

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Diesel export policy

India introduced fuel export duties in March amid the crisis in the Middle East, when supplies through the Strait of Hormuz were not being carried out. At that time, the authorities also reduced domestic taxes on gasoline and diesel to protect fuel supplies and consumers in the country.

According to OilPrice, the lower diesel duty may facilitate additional supplies to the international market, which is experiencing a shortage of this type of fuel and price shocks. Last month, India’s Oil Minister Hardeep Puri said that the country would continue exporting diesel to meet global demand. He also noted that India’s refining capacity is growing thanks to years of investment.