Key insights
- India reduced export duties on diesel and aviation fuel, while keeping domestic duties unchanged. This aims to ease pressure from rising oil prices after the Strait of Hormuz closure impacted crude import prices. While this may slightly alleviate global inflationary pressures, the impact on US equities is expected to be minimal, as it's largely an India-specific policy adjustment.
Investing.com -- India cut export duties on diesel and aviation turbine fuel on Thursday while maintaining duties on domestic petrol and diesel consumption, according to a government statement.
The export duty on diesel was reduced to 23 rupees ($0.24) per litre from 55.5 rupees, while the export duty on aviation turbine fuel decreased to 33 rupees from 42 rupees, the government said in a notification.
Duty rates on petrol and diesel for domestic consumption stayed unchanged, and export duties on petrol remained at zero.
India, the world’s third-largest oil importer and consumer, has faced pressure from rising oil prices following the closure of the Strait of Hormuz after the U.S.-Israeli war on Iran.
The country’s crude import prices climbed to $120 per barrel earlier this month, reducing profit margins for retailers selling gasoline and gasoil.
Indian refiners have kept pump prices of gasoline and gasoil unchanged for four years to protect consumers from global market volatility.
To limit rising airfares, the government capped the monthly increase in aviation turbine fuel prices for domestic airlines at 25% in April. Jet fuel represents up to 40% of airline operating expenses.
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