Govt Tweaks Fuel Export Duties for Market Stability

New Delhi, May 16. In a bid to balance domestic needs with export opportunities, India has imposed a ₹3-per-litre special additional excise duty on petrol while reducing the export duty on diesel to ₹16.5 per litre. The changes, effective immediately, leave domestic fuel taxes untouched. Ministry sources explained that the step responds to heightened volatility in global oil markets following persistent West Asia tensions. Diesel export duty had previously swung between ₹21.5 and ₹55.5 per litre before settling at the new lower rate. Aviation turbine fuel duty has also been cut to ₹16 per litre after earlier adjustments. The government maintains that these revisions are temporary and will be reviewed regularly. Analysts believe the policy will help oil-marketing companies plan exports more predictably while ensuring adequate supplies for Indian consumers. The latest notification supersedes earlier orders dated 26 March, 11 April and 30 April.