India takes multiple measures to ensure domestic fuel supply

Xinhua News Agency, Beijing, July 2. The Indian government announced on the 1st that it will raise export taxes on diesel, gasoline and aviation kerosene, and impose a “windfall profit tax” on some oil companies to limit exports and ensure domestic market supply.

The Indian government issued a decree on the same day, announcing an additional export tax of 6 rupees (about 0.5 yuan) per liter on gasoline and aviation kerosene, and an additional 13 rupees (1.1 yuan) per liter of diesel.

In addition, the government will impose a “windfall profits tax” on oil companies that profit from soaring oil and gas prices, levying 23,250 rupees (1,971.6 yuan) per ton of crude oil in the form of a special additional excise tax.

However, this tax does not apply to small producers with crude oil production of less than 2 million barrels in the previous fiscal year (April 2021-March 2022) and the current fiscal year (April 2022-March 2023) The portion of excess oil production by oil companies in the month).

India’s largest private oil refiner Reliance Industries is one of the targets of the “windfall profits tax”. Reliance Industries has made a fortune recently by buying large quantities of discounted Russian oil, cutting supplies to the domestic market while dramatically increasing exports. After the Indian government announced the imposition of a “windfall profits tax”, the company’s stock price fell as much as 8.7%.

In order to expand the supply of the domestic market, the Indian government also issued a new regulation: companies exporting gasoline must sell 50% of their oil in the domestic market within the current fiscal year; for companies exporting diesel, this The ratio needs to reach 30%.

According to the decree, the above export restrictions will not apply to oil plants dedicated to export, such as Reliance Industries’ large refinery in Jamnagar, Gujarat. (Li Yannan)