Global Economy — 2026-04-11

India More Than Doubles Diesel Export Duty Amid Escalating Energy Crisis

India hiked diesel export duty from 21.5 to 55.5 rupees per liter and raised jet fuel export tax to 42 rupees per liter, citing the need for immediate action. The move aims to discourage fuel exports and bolster domestic stockpiles as the country, which imports 90% of its crude, grapples with supply disruptions from the Iran war. India's energy crisis follows the Strait of Hormuz closure, which disrupted global oil transit.

Analysis
India's 158% diesel export duty hike signals New Delhi expects the energy disruption to persist regardless of the Islamabad talks' outcome. As a 90% crude importer with strategic relationships in both the Gulf and with Iran, India is effectively building domestic fuel reserves at the expense of export revenues, a self-insurance strategy against further supply shocks.

1 sources

Windfall tax: Centre hikes diesel export duty to Rs 55.5/litre, ATF to Rs 42 - Business Today