News Desk
NEW DELHI — In a significant move aimed at strengthening regional energy security, the Indian government has expanded its exemption on the Road and Infrastructure Cess (RIC) for petrol and diesel exports, officially adding the Maldives to the list of beneficiary nations.
The directive, issued by the Ministry of Finance on 30 June 2026, amends a 2019 notification to include the Maldives and Mauritius alongside existing partners Nepal, Bhutan, Bangladesh, and Sri Lanka. Under this new framework, fuel exports managed by India’s Public Sector Oil Companies (PSUs) to the Maldivian market will no longer be subject to the infrastructure levy, effectively lowering the cost-burden of these essential energy imports.
For the Maldives, a nation that relies heavily on imported refined petroleum products to power its tourism-dependent economy and internal transport networks, the timing of this decision is strategically significant. The exemption is expected to provide much-needed fiscal relief in the face of volatile global energy markets.
Analysts suggest the policy shift is an expression of India’s “Neighbourhood First” policy, designed to streamline economic integration with its maritime neighbours. By removing the RIC—a cess originally implemented to fund domestic road and infrastructure projects—India is effectively subsidising the landed cost of fuel for the Maldivian public sector.
The notification, which took effect immediately upon its publication, was formalised by the Department of Revenue under the Finance Act, 2018. While the primary objective is ostensibly to ensure a stable and affordable energy supply chain within the Indian Ocean region, the move also underscores New Delhi’s commitment to maintaining a robust economic footprint in the Maldives, amid growing competition for influence in the region.
The exemption applies specifically to fuel procured through Indian state-owned enterprises, ensuring that the benefit is passed directly through state-to-state supply channels. For the Maldives the development serves as a vital diplomatic win, securing a more favourable trade environment for its most critical industrial necessity.
