India reduces windfall tax on crude oil
20 July, 2022 | Vaishali Sharma
The national government reduced the windfall tax on crude oil to Rs 17,000 per tonne on Wednesday, down from Rs 23,250 per tonne previously. This action coincides with the most recent drop in globa...
The national government reduced the windfall tax on crude oil to Rs 17,000 per tonne on Wednesday, down from Rs 23,250 per tonne previously. This action coincides with the most recent drop in global crude oil prices.
Taking into consideration the windfall benefits accrued by local petroleum producers as a result of increased global crude prices in recent months, the Centre levied a crude oil cess of Rs 23,250 per tonne on July 1. Domestic oil producers offer crude to domestic refineries at parity with foreign pricing. Windfall tax is a tax applied on an unplanned or unexpectedly big profit.
According to a government statement, the higher tariffs will go into effect today, Wednesday.
Furthermore, the previously imposed special extra excise charge on fuel on exports has been decreased to Rs 10 per litre.
The export duty on gasoline has been eliminated. Petrol export duty of Rs 6 per litre was applied on July 1.
As exports became more profitable, it was discovered that certain refiners were drying out their pumps in the domestic market, according to an official statement at the time.
“While crude prices have increased sharply in recent months, the prices of HSD and Petrol have shown a sharper increase. The refiners export these products at globally prevailing prices, which are very high,” the government had explained the rationale behind the export tax move.