Indian government extends restrictions on gasoline, diesel

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

The government had imposed curbs on gasoline and gasoil exports through the end of the financial year. The latest notification, issued did not specify how long the curbs would remain in place.

It asked refiners to commit to selling 50% of their annual volume of gasoline exports and 30% 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.

India last year imposed the rare restrictions after non-state refiners Reliance Industries 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.