India Rejigs Fuel Taxes: Shields Consumers, Curbs Exports Amid West Asia Oil Shock

• India overhauls fuel duties to protect domestic economy from global oil volatility triggered by West Asia tensions.
• Government cuts domestic excise duties on petrol and diesel by ₹10 per liter, bringing the levy to ₹3 on petrol and nil on diesel for local consumption.
• Export duties on diesel and ATF increased to ₹21.5 and ₹29.5 per liter respectively, to discourage overseas shipments and ensure domestic availability.
• The new tax structure will be reviewed fortnightly, marking a shift towards a dynamic, market-linked regime.
• The move aims to stabilize retail fuel prices, support OMCs, and ensure energy security, despite potential fiscal trade-offs.