Maldives has been added to the list of nations exempt from two types of duties on fuel imported from India.

India placed Maldives on the roster of nations that are free from the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC). The list comprises Bhutan, Nepal, Bangladesh, and Sri Lanka. Maldives and Mauritius were added to the list on June 30th following updates made.

According to the Neighborhood First Policy, the SAED is regarded as a responsibility that is advantageous when global fuel prices are increasing.

Recent updates indicate that for SAED, the charge is INR 4 for each liter of petrol and INR 8.5 for every liter of diesel.

As the Maldives is exempt from the two duties, it will incur lower costs when importing fuel from India.

India has granted the Maldives this concession at a moment when fuel prices are increasing due to the Middle East conflict initiated by the United States and Israel, creating significant challenges for the Maldives.