India Overhauls Windfall Taxes on Fuel Exports

The duty on diesel exports drops significantly to 8.5 rupees per litre from the previous 14 rupees, while aviation turbine fuel sees a similar reduction, falling to 7.5 rupees from 12.5 rupees. In a strategic pivot to secure local inventories, officials simultaneously raised the export duty on petrol from 1.5 rupees to 4 rupees per litre.

These revisions arrive as economists forecast a sustained period of lower oil prices, prompting the government to provide more flexibility for regional trade partners. Under the updated framework, export duty exemptions have been broadened to include Mauritius and the Maldives, signaling an effort to maintain stable energy ties within the region despite the fluctuating domestic tax landscape.