Centre cuts windfall tax on crude oil; ONGC, OIL to gain

Windfall tax on aviation turbine fuel has also been cut which is expected to benefit the downstream oil refiners that export petroleum products

PGurus Newsdesk

October 18, 2023

Windfall tax on aviation turbine fuel has also been cut which is expected to benefit the downstream oil refiners that export petroleum products

Govt slashes windfall tax on domestic crude oil from Rs.12,100/ tn to Rs.9,050/ tn

The Central government has reduced the windfall tax on domestic crude oil with effect from October 18 from Rs.12,200 a tonne to Rs.9,050 in its fortnightly review which will benefit upstream oil companies, including ONGC and Oil India Ltd (OIL).

The windfall tax on petroleum crude was raised to Rs.12,100 a ton from Rs.10,000 with effect from September 30 as oil prices at the time had soared to $95 a barrel. Oil prices came down but have started heading north again in the wake of the Israel-Hamas conflict.

The windfall tax on aviation turbine fuel has also been cut from Rs.3.50 a litre to Re.1 and that on diesel from Rs.4 a litre to Rs.3 which is expected to benefit the downstream oil refiners that export petroleum products.

The government first imposed the windfall tax on crude oil producers in July last year and extended the levy on exports of gasoline, diesel, and aviation fuel after private refiners started making gains from robust refining margins in overseas markets, instead of selling at home.

[With Inputs from IANS]

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