REGULATORY · MARKET STRUCTURE · SOUTH ASIA
India imposes export tax on petrol and diesel
Change
India imposed an export tax on petrol and diesel for refineries selling fuel overseas.
Why it matters
Refineries exporting petrol and diesel must now pay the new export tax, increasing the marginal cost of overseas sales. This restricts incentives to export, making exports less profitable and directing more supply toward the domestic market.
Implications
- · Export profitability for refineries will be reduced.
- · Refinery export volumes are likely to decline, increasing domestic fuel availability pressure relief for consumers.
Who is affected
- · Refinery operators
- · Oil marketing companies
- · Fuel exporters','Domestic fuel consumers
Source
Topics
Regulatory & Compliance Policy & Regulation Trade & Sanctions Trade & Tariffs Energy & Power Oil & Gas