India more than doubled export duties on diesel to 55.5 rupees ($0.6) per liter from 21.5 rupees, according to a gazette notification on Saturday.
The hike comes as the Middle East war weighs on the outlook for Asia’s third largest economy, which imports 90 percent of its crude. It will help the government shore up revenue collection as elevated oil prices and supply chain disruptions impact industries and consumers. It may also discourage refiners from selling abroad thus bolstering stockpiles.
The move, an official in the finance ministry told Bloomberg, would also prevent exporters from taking advantage of India’s lower prices aimed at keeping the fuels more affordable for the domestic market.
Duty on jet fuel has been increased to 42 rupees per liter from 29.5 rupees earlier. Export duties on petrol remain unchanged.
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