India limits exports of fuels and refined products. Fears for the internal market
India has stepped up efforts to ensure sufficient energy supplies for the domestic market by imposing limits on fuel exports and introducing export duties.
According to reports by Reuters, this measure will affect the profits of refineries such as Reliance Industries, Nayara Energy and ONGC.
Indian refineries recently bought Russian oil at discounted prices. They then exported this cheap oil in the form of fuels, taking advantage of the shortage of fuel supplies, but effectively undermining the security of domestic supply. The government therefore restricts exports to keep the internal market well supplied.
Indian imports of Russian oil rose to a record high of more than 840,000 bpd, according to Kpler data cited by Reuters in early June, and could have increased further last month to exceed 1 million barrels per day. That would mean that the share of crude imported from Russia to India has risen to nearly a quarter, the report reads.
A more recent report published by the Indian newspaper Tribune suggested that Russia may have become India's largest oil supplier last month. According to the new Reuters report, the largest buyers of Russian crude oil have been Reliance Industries and Nayara Energy, the latter partially controlled by Russia's Rosneft.
In addition to duties on exports, the Indian government has forced exporters to sell gasoline domestically equivalent to 50% of that sold abroad in the fiscal year ending May 2023.
For diesel, the obligation to sell to the domestic market is at least 30% of what is sold abroad by exporters.
In a further blow to the Indian oil industry, the authorities also imposed an unexpected tax in the form of an additional special excise duty at a rate close to $ 300 per tonne of crude oil. India is one of the most oil-dependent nations in the world and depends on overseas for more than 80% of the oil it consumes.
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Article India restricts exports of fuels and refined products. Fears for the internal market comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-limita-le-esportazioni-di-carburanti-e-prodotti-raffinati-timori-per-il-mercato-interno/ on Sat, 02 Jul 2022 07:00:44 +0000.