India Cuts Petrol Export Duty to Zero Ahead of Festival Season

New Delhi — India's government has moved to zero out export duties on petrol while simultaneously increasing the tax burden on diesel exports, marking a notable adjustment to the nation's energy taxation framework ahead of the Diwali festival period.

The policy change, which takes effect immediately, represents a recalibration of India's export incentive structure for petroleum products. By eliminating the export duty on petrol, the government aims to support domestic refineries and enhance India's competitiveness in global energy markets during a crucial economic season.

Conversely, the decision to increase tax on diesel exports reflects the government's effort to balance multiple policy objectives. The move may help moderate domestic diesel prices while adjusting India's trade posture on fuel products.

The revised tax rates have been implemented on a temporary basis, with authorities confirming the measures will remain in place for a two-week period. Officials have indicated that the rates will be subject to review based on market conditions and policy outcomes during this initial phase.

The timing of the announcement, just weeks before Diwali when energy demand typically rises, suggests the government is attempting to stabilize fuel availability and pricing during the peak consumption season.