NEW DELHI: Asia’s gasoline refining profit margin declined on Wednesday, after India exempted local oil producers and refiners from an export levy on motor fuel amid dwindling global product demand.

The crack fell to $6.89 a barrel from $8.40 a barrel in the last session.

Removal of the charge on gasoline will particularly benefit Reliance’s 704,000-barrel-per-day export-focused refinery at Jamnagar in Gujarat state.

“Asia’s gasoline demand (excluding China) should only see marginal improvement between now and September, averaging 80,000 barrels per day lower than levels seen during the same period in 2019,” consultancy FGE said in a report.

Meanwhile, the discount on naphtha margin widened to $19.70 a tonne from $17.45 a tonne on Tuesday after inventories at Asia’s top supplier rose.

Light distillates inventories at Fujairah Oil Industry Zone increased by 365,000 barrels to 6.589 million barrels in the week to July 18, S&P Global Commodity Insights data showed.

Russia held its spot as China’s top oil supplier for a second month in June as Chinese buyers cashed in on lower-priced supplies, slashing more costly shipments from Saudi Arabia.

Oil prices slumped more than $1 a barrel, pressured by global central bank efforts to tame inflation and ahead of expected builds in US crude inventories.