India helps fuel-starved Russia — and brings back the gasoline export tax

India has recently raised export duties on diesel and reintroduced a levy on gasoline exports while reducing the duty on jet fuel, Business Standard reported. The export duty on diesel was increased from 24 rupees to 25 rupees per liter, and an export duty of 1.5 rupees per liter on gasoline was imposed, up from zero. Meanwhile, the export duty on jet fuel was decreased from 19.5 rupees to 19 rupees per liter.

These adjustments are made every two weeks based on average international prices for crude oil, gasoline, diesel, and jet fuel, as per the latest revision that took effect on August 15. The government stated that the domestic excise duty rates on gasoline and diesel remain unchanged. This move comes as Indian refineries continue to be major exporters of petroleum products, and the government uses export duties as a policy tool to balance overseas sales with domestic supply amid volatility in global oil markets.

The fuel crisis in Russia has been exacerbated by Ukrainian attacks on oil refineries, leading to a record 21 attacks in August alone, according to Bloomberg calculations. Russia has imported nearly 460,000 metric tons of motor fuel through its seaports in August, with most of the petroleum products being gasoline shipments from India, Türkiye, and Morocco delivered to Russian ports in the Baltic and Arctic.

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