Home ›› 21 Mar 2023 ›› Asia Biz
India plans to extend restrictions on the export of diesel and gasoline after the current fiscal year ends this month to ensure the availability of refined fuels for the domestic market, two government sources with direct knowledge of the matter said.
The extension of rules may discourage some Indian refiners, mainly private companies, from buying Russian fuels for re-exports to countries including those in Europe that have stopped purchases of refined products from Russia due to its invasion of Ukraine, reports Reuters.
India, the world’s third-largest oil consumer, imposed a windfall tax on refined fuel exports last year and mandated that companies sell the equivalent of 50per cent of their gasoline exports and 30per cent of their diesel exports domestically in the current fiscal year to March 31.
New Delhi issued the rare restrictions after private refiners Reliance Industries (RELI.NS) and Nayara Energy, key Indian buyers of discounted Russian supplies, began reaping major profits by aggressively boosting fuel exports instead of domestic sales.
That forced state refiners to fill the void and meet demand at home by selling fuels at government-capped lower prices.
