India Waives Oil Export Duties to Ease Maldives Energy Costs

India has waived export duties on petroleum products for the Maldives, according to an amendment published in the Gazette of India. The move aims to lower the cost of energy imports for the island nation by removing specific financial burdens on fuel shipments. The duty waiver specifically applies to the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC). By amending its duty law, India has added the Maldives to a select group of neighboring countries eligible for these concessions, joining Bhutan, Nepal, and Bangladesh. This strategic shift comes as the global energy market faces instability due to trade disruptions in the Strait of Hormuz, which have hampered business operations across the Middle East. Traditionally, the Maldives sources the majority of its oil from Oman, Singapore, Malaysia, and the United Arab Emirates. However, these geopolitical tensions have prompted the Maldivian government to explore sourcing fuel from India to ensure energy security. By eliminating these export duties, India is positioning itself as a more viable and cost-effective alternative for the Maldives during a period of global volatility. The reduction in costs could potentially lower the overhead for fuel imports, which are critical for power generation and transport across the archipelago. The Maldivian government has not yet issued an official comment regarding the duty concession.