India hikes petrol export duty to ₹2.5 per litre, reduces diesel levy

The Union government has raised the export duty on petrol to ₹2.5 per litre while simultaneously reducing the export duty on diesel to ₹8.5 per litre, according to official notifications issued Tuesday.

The duty adjustments reflect the government's policy of calibrating export levies in line with international crude oil and petroleum product price movements. These periodic revisions, conducted every fortnight, allow policymakers to balance domestic supply considerations with export competitiveness and revenue requirements.

The contrasting moves on petrol and diesel export duties suggest divergent market dynamics for the two fuels. The increase in petrol duty and decrease in diesel duty may indicate differential pricing pressures in global markets for these petroleum products.

India's export duty mechanism on petroleum products serves multiple objectives, including moderating domestic inflation, protecting domestic consumers, and managing fiscal revenues. The fortnightly review cycle enables the government to respond promptly to volatility in international energy markets, which significantly influence India's crude oil import bills and refinery economics.

The petroleum ministry typically announces these duty changes based on assessments of international crude benchmarks and refined product prices tracked over the preceding fortnight. Industry participants closely monitor these adjustments as they influence refinery margins and India's export competitiveness in regional energy markets.