The Indian government has granted the Maldives an exemption from two fuel-related duties, a move expected to reduce the country’s fuel import costs.
Following amendments introduced on 30 June, the Maldives has been added to the list of countries that are exempt from the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC) on fuel exports from India. Nepal, Bhutan, Bangladesh, Sri Lanka, and Mauritius are also included on the exemption list.
The exemption has been introduced under India’s Neighborhood First Policy, which focuses on strengthening ties and cooperation with neighboring countries. The SAED is typically imposed when international fuel prices rise.
Based on the current rates, the Special Additional Excise Duty is INR 4 per litre on petrol and INR 8.5 per litre on diesel.
With the exemption now in effect, the Maldives is expected to spend less on fuel imports from India, providing some financial relief as global fuel prices remain elevated.
The decision comes at a time when rising fuel prices, driven by ongoing tensions and conflict in the Middle East, have increased import costs for many countries, including the Maldives. The latest concession is expected to help reduce some of the financial pressure associated with fuel imports while further strengthening economic cooperation between India and the Maldives.
