India's Fuel Export Duty Shuffle Amid Global Fluctuations

India has updated its export duties on fuels, increasing the duty on petrol while reducing those on diesel and aviation fuel. These changes, announced following a hike in retail fuel prices due to Iran war-induced market fluctuations, will be revised fortnightly based on international crude oil prices.

In a strategic move responding to global oil market fluctuations, India announced significant adjustments to its fuel export duties late Friday. The government increased the duty on petrol exports to 3 rupees per litre while reducing the duties on diesel and aviation fuel to 16.5 and 16 rupees per litre, respectively.

The changes coincide with a recent rise in domestic retail fuel prices, marking the first adjustment since the onset of the Iran conflict. These export duty rates will undergo a review every two weeks, aligning with average international crude oil prices during the previous period.

The existing excise duty rates for petrol and diesel intended for domestic consumption remain unaffected by this revision. Currently, the exchange rate stands at $1 to 95.9650 Indian rupees.