The central government on Tuesday increased windfall tax on petroleum crude to Rs 9,800 per tonne from Rs 9,050 per tonne with effect from November 1, according to a government notification. According to news agency Reuters, the windfall tax on aviation turbine fuel has been cut to nil from Rs 1 per litre and diesel reduced to Rs 2/litre from Rs 4/litre, the notification added.
On Ovtober 18, the government slashed special additional excise duty (SAED) on crude petroleum to Rs 9,050/tonne. In the last fortnightly review on September 29, windfall tax on domestically produced crude oil was set at Rs 12,100/tonne. In addition, the windfall tax on the export of diesel has been reduced to Rs 4 per litre, from Rs 5 per litre. Also, the Centre cut the duty on aviation turbine fuel (ATF) to Rs 1 per litre from Rs 2.5 per litre. SAED on petrol will continue at nil. The government had raised the windfall tax on petroleum crude to Rs 12,100 per tonne from Rs 10,000 per tonne on September 30.
India imposed the windfall tax on crude oil producers in July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home. The Centre first imposed windfall profit taxes on July 1, 2022. This decision was prompted by significant profits earned by oil production companies, driven by multi-year high crude oil prices following Russia’s invasion of Ukraine.
Meanwhile, crude oil prices on Tuesday increased Rs 24 to Rs 6,904 per barrel in futures trade as participants widened their positions following a firm spot demand. On the Multi Commodity Exchange, crude oil for November delivery traded higher by Rs 24 or 0.35 per cent at Rs 6,904 per barrel in 6,098 lots.
Analysts said raising of bets by participants kept crude oil prices higher in futures trade. Globally, West Texas Intermediate crude oil was up by 0.34 per cent at $82.59 per barrel, and Brent crude traded 0.55 per cent higher at $87.93 per barrel in New York.
ALSO READ | Centre’s Fiscal Deficit Jumps To 39 Per Cent Of Annual Target In First Half Of FY24