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Thursday, June 8, 2023

India Intends to Continue the Export Restrictions on Petroleum after March

India implemented a windfall tax on refined petroleum exports last year

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INDIA: As the current fiscal year ends this month, India aims to extend limits on the export of diesel and petroleum to maintain the availability of refined fuels for the domestic market.

The expansion of regulations may deter some countries refiners, primarily private businesses, from acquiring Russian fuels for re-export to nations like those in Europe that have stopped acquiring refined goods from Russia as a result of its invasion of Ukraine.

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Third-largest oil user in the world, India, implemented a windfall tax on refined petroleum exports last year and required businesses to sell 50% of their gasoline exports and 30% of their diesel exports domestically in the current fiscal year through March 31.

New Delhi imposed the unusual limits when private refiners Reliance Industries and Nayara Energy, important Indian consumers of heavily discounted Russian supplies, started making significant profits by aggressively increasing petroleum exports rather than domestic sales.

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One of the official sources stated that India’s energy and commerce ministries are debating whether to extend the directive past the current fiscal year.

“We want private enterprises to sell diesel and petrol in the Indian market, thus we would like to expand it. Why should state-run businesses suffer when all Indian refiners are purchasing Russian oil at a discount,” the official said.

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The source also stated that a new communication is anticipated this week or early next week.

Also Read: Wheat, Gasoline, and Flour Prices Skyrockets in Nigeria Amid Russia-Ukraine War


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