Govt extends export curbs on petrol, diesel

The restrictions on the export of diesel and petrol have been extended, the government said in a notification on Sunday.

This part of the govt's efforts to ensure the availability of refined fuels for the domestic market.

India is the world's third-largest oil consumer.

The curbs were originally supposed to be in place till the end of financial year 2023, which ended yesterday.

The latest notification made no mention about how long the curbs would remain in the place.

Last year, the govt imposed a windfall tax on refined fuel exports. It also mandated that companies sell the equivalent of 50% of their petrol exports and 30% of their diesel exports domestically till the end of FY23.

From March 4 this year, the windfall tax on the export of diesel was cut to its lowest of Rs 0.50 per litre and nil on jet fuel (ATF) while the levy on domestically produced crude oil was raised marginally.

The latest extension of curbs could discourage some Indian refiners, mainly private companies, from buying Russian fuel for re-export, some reports said.

It may be mentioned here that Indian companies are exporting fuel to countries including those in Europe that have stopped buying refined products from Russia due to its invasion of Ukraine.

The restrictions were put in place after refiners Reliance Industries and Nayara Energy, key Indian buyers of discounted Russian supplies, began making substantial profits by aggressively boosting fuel exports instead of increasing domestic sales.

That forced PSU refiners to meet demand at home by selling fuel at lower, government-capped prices.