Indian refiners are increasing diesel exports as the West Asia conflict and restrictions by Russia and China tighten supplies, although higher crude import costs and export duties could limit gains
The US on Friday lifted sanctions on the sale of Russian diesel till April 7 next year. The announcement by the US Department of Treasury came minutes after US President Donald Trump spoke with Russian President Vladimir Putin and struck a deal to supply diesel to the American and global markets. "...all transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations that are related to the sale, delivery, offloading, or importation, including importation into the United States, of diesel fuel of Russian Federation origin are authorised through 12:01 am eastern daylight time, April 7, 2027," the Treasury Department said. Earlier, Trump said Russia will immediately supply more than 300,000 tons of diesel, followed by 500,000 tons in November, and one million tons immediately thereafter. Russia will then deliver another 3 million tons of diesel based on the condition of Russia's refineries, Trump said in a post on Truth Social. Diesel prices have surged arou
The warning marks an escalation of pressure on Europe as US President Donald Trump considers a potential diesel export ban to bring down US fuel prices ahead of November's midterm elections
Several farm-state lawmakers have urged Trump to limit US diesel exports during the peak of the fall harvest season
Export duty on diesel has been reduced to ₹20 per litre from ₹25, while levies on petrol have been cut to ₹0.5 from ₹1.5 per litre, respectively
Diesel export duty lowered to ₹24 a litre from ₹25.5, while petrol levy is scrapped and ATF tax cut to ₹19.5 a litre as oil prices fall
Special additional excise duty on exports of petrol, diesel and aviation turbine fuel has been increased, while domestic excise duty rates remain unchanged.
The exports come after European diesel profit margins hit a record of $74 a barrel on Wednesday as the region's stockpiles have fallen to their lowest since 2014
India has increased windfall taxes on diesel and aviation turbine fuel exports as global oil prices rise following the escalation of the US-Iran conflict
The government has lowered export duties on diesel and aviation turbine fuel while raising the levy on petrol exports as global crude oil prices continue to ease
There is no change in the rate of duty on exports of petrol and it continues to be at ₹1.5 per litre
The Centre has retained the export levy on diesel at ₹13.5 per litre, while fixing the duty on petrol exports at ₹1.5 per litre and on aviation turbine fuel (ATF) exports at ₹9.5 per litre
The reimposed windfall export taxes on diesel and aviation turbine fuel (ATF) will not apply to Reliance Industries Ltd's SEZ refinery due to judicial rulings, a senior official said on Thursday. Effective March 26, the government revised fuel levies, reintroducing export duties of Rs 21.50 per litre on diesel and Rs 29.50 per litre on ATF, while keeping petrol exports exempt. The move coincided with a Rs 10 per litre cut in excise duty on petrol and diesel. Initially, it was not clear if exports from Reliance's special economic zone (SEZ) refinery - one of the largest contributors to India's refined product exports - would retain exemptions similar to those under the 2022 windfall tax regime. "As per judicial prouncements on this issue, the special additional excise duty and additional excise duty are not applicable on SEZ refineries," Jainendra Singh Kandhari, Joint Secretary in the Tax Research Unit (TRU-1) of the Department of Revenue, said at a media briefing. The government .
The surge in exports could boost spot sale margins for Indian refiners who have purchased large volumes of prompt Russian crude to replace West Asia supply disrupted by the war
India's diesel and petrol consumption rose strongly in September 2025, aided by GST cuts, festive mobility and higher freight, though aviation fuel demand slipped
Increased diesel from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia
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Russia banned diesel exports on Sept. 21 to stabilise domestic market fundamentals, though this was partially lifted from Oct. 6
Energy Minister Nikolai Shulginov said further decisions on fuel market regulation would be published in the near future
On the face of it, the ban won't have a big impact on the Western nations that lined up to support Ukraine after Russian troops crossed the border in February 2022