India has reduced export duties on diesel and aviation turbine fuel in a move aimed at easing pressure on refiners and stabilizing the energy sector amid rising global crude prices. The decision comes as international oil markets remain volatile following disruptions linked to tensions involving Iran and the closure of the Strait of Hormuz.
According to a government notification issued Thursday, the export duty on diesel has been sharply lowered from 55.5 rupees per litre to 23 rupees per litre. Export duty on aviation turbine fuel has also been reduced, falling from 42 rupees to 33 rupees per litre. However, duties affecting petrol and diesel sold for domestic consumption remain unchanged, and export duties on petrol continue to stay at zero.
India, which ranks as the world’s third largest importer and consumer of crude oil, has been facing increased import costs after crude prices surged to around 120 dollars per barrel earlier this month. The spike has tightened margins for fuel retailers, particularly as domestic pump prices for gasoline and diesel have largely remained unchanged for nearly four years to shield consumers from international price swings.
The aviation sector has also been under pressure due to higher fuel costs. Jet fuel typically accounts for as much as 40 percent of airline operating expenses, making price stability critical for carriers. To help prevent steep increases in ticket prices, the government earlier introduced a temporary cap limiting monthly increases in aviation turbine fuel prices for domestic airlines to 25 percent during April.
The duty reduction reflects a balancing act by policymakers attempting to support refiners and airlines while continuing to protect consumers from inflationary impacts. As global energy markets remain uncertain, India’s adjustments signal a cautious approach to managing fuel pricing pressures while maintaining domestic economic stability.
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