RoydadNaft –  India has raised the windfall tax on petroleum crude from 6,700 rupees to 10,000 rupees per ton, effective September 16th, according to a government notification. This move aims to generate additional revenue for the Indian government and is a result of the tax imposed on crude oil producers in July of last year.

In addition to the increase in windfall tax, the Indian government has also reduced the levy on diesel to 5.50 rupees per litre from 6 rupees. Similarly, the windfall tax on aviation turbine fuel has been lowered to 3.50 rupees per litre from 4 rupees.

The decision to cut the levy on diesel and aviation turbine fuel comes as a means to alleviate the burden on consumers. By reducing the tax on these fuels, the government hopes to provide some relief from the rising fuel prices experienced by the general population.

It is important to note that these changes are not the first adjustments made to the windfall tax. Previously, on September 1st, the government had reduced the windfall tax on petroleum crude from 7,100 rupees per ton to 6,700 rupees per ton.

The imposition of the windfall tax on crude oil producers last year was a response to private refiners looking to profit from high refining margins in overseas markets rather than selling their products domestically. By extending the levy to exports of gasoline, diesel, and aviation fuel, the Indian government sought to ensure that the benefits of the refining industry would remain within the country.

This recent increase in windfall tax, along with the reduction in levy on diesel and aviation turbine fuel, demonstrates the Indian government’s efforts to balance the needs of both producers and consumers in the oil industry.

Definitions:
– Windfall tax: A tax imposed on profits made by businesses or individuals as a result of unexpected or excessive profits.
– Petroleum crude: Unrefined oil extracted from the earth, typically used as a raw material for refining into various petroleum products such as gasoline, diesel, and jet fuel.

Sources:
– Reuters