India extends export curbs on gasoline, diesel

MUMBAI

India has extended restrictions on the export of diesel and gasoline, the government said in a notification, as New Delhi tries to ensure the availability of refined fuels for the domestic market.

The government had imposed the curbs on gasoline and gasoil exports through the end of the financial year.

The latest notification, issued late on April 1, did not specify how long the curbs would remain in the place.

It asked refiners to commit to selling 50 percent of their annual volume of gasoline exports and 30 percent of their diesel exports in the domestic market.

The extension may discourage some Indian refiners, mainly non-state companies, from buying Russian fuel for re-export to other countries, including to European importers that have stopped purchases of refined products from Russia due to its invasion of Ukraine.

New Delhi last year imposed the rare restrictions after non-state refiners Reliance Industries RELI.NS and Nayara Energy, key Indian buyers of discounted Russian supplies, began reaping substantial profits by aggressively boosting fuel exports instead of increasing domestic sales.

That forced state refiners to fill the void and meet demand at home by selling fuel at lower, government-capped prices.