India Imposes Export Tax on Refineries Selling Petrol and Diesel Abroad
Centre moves to safeguard domestic fuel supply and shield consumers from rising international oil prices
NEW DELHI: The government has introduced an export tax on petrol and diesel as global fuel prices continue to surge, Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Friday. The decision aims to prioritise domestic availability and protect consumers from international market volatility.
In a statement shared on X, Puri said that refineries exporting petrol and diesel will now be required to pay an export levy due to the sharp escalation in global fuel prices.
The move follows a steep rise in crude oil prices, which have jumped from nearly $70 per barrel to around $122 per barrel within a month. This increase has led to significant retail fuel price hikes worldwide, with rates rising between 30% and 50% in Southeast Asia, about 30% in North America, 20% in Europe, and up to 50% in parts of Africa.
According to the minister, the government faced a critical choice either pass on the full burden of rising international prices to consumers or absorb part of the impact to maintain affordability. Opting for the latter, the Centre has continued its strategy of cushioning households from fuel price shocks, a policy followed since the Russia-Ukraine conflict disrupted global energy markets.
Puri noted that the government has already sacrificed substantial tax revenues to offset losses incurred by oil marketing companies. These under recoveries are currently estimated at approximately ₹24 per litre for petrol and ₹30 per litre for diesel.
Finance Minister Nirmala Sitharaman has supported the decision, which is also intended to discourage excessive exports during a period of elevated global demand and ensure adequate domestic supply.
Describing the measure as “timely and decisive,” Puri emphasised that the policy reflects the government’s commitment to balancing consumer protection with energy security.
