The Indian government has raised the diesel export tax from ₹21.5 per litre ($37) to ₹55.5 per litre ($95), aiming to bridge the pricing gap between state-run oil marketing companies (OMCs) and private refiners. This move may resolve ongoing disputes over domestic supply prices amid high global diesel rates.

• 01The export duty on diesel has increased significantly from ₹21.5 to ₹55.5 per litre.
• 02State-run OMCs control about 90% of India's fuel retail market.
• 03The pricing gap between OMCs and private refiners has narrowed to approximately $3 per barrel.
• 04Private refiners argue that their crude acquisition costs exceed benchmark levels.
• 05The new tax may help stabilize domestic supply agreements.

The increase in diesel export tax may lead to more stable domestic fuel prices, benefiting consumers and businesses reliant on diesel for transportation and logistics.