Oil & Gas

01 Mar 2024

Indian Government Hikes Windfall Tax on Petroleum Crude

01 Mar 2024  by reuters   

A man pours petrol into an underground tank at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas/File Photo Purchase Licensing Rights
The Indian government hiked its windfall tax on petroleum crude to 4,600 rupees ($55.51) a metric ton from 3,300 rupees with effect from March 1, according to a government order released on Thursday.

India also cut the windfall tax on diesel to zero from 1.50 per litre effective March 1, the order showed. The tax on petrol and aviation turbine fuel will continue to be nil.

On Feb. 16, the government raised the windfall tax on petroleum crude to 3,300 rupees a metric ton from 3,200 rupees and hiked the tax on diesel to 1.5 rupees a litre from zero.

India imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The government revises the tax fortnightly.


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