Business

Government Of India Reduces Windfall Tax On Crude Oil Amid Falling Global Prices

In response to the recent downturn in global crude oil prices, the Government of India has slashed the windfall tax on petroleum crude from Rs 5,200 to Rs 3,250 per metric tonne, effective from 15 June.

This marks the second consecutive reduction in the tax, following a similar adjustment earlier this month.

Due to the recent decline in international crude oil rates, the Government has adjusted the windfall tax downward, reviewing it every fortnight based on the average crude prices of the preceding period.

In the fortnight beginning 1 June, the Government had previously lowered the tax from Rs 5,700 to Rs 5,200 per metric tonne.

This move will benefit upstream oil exploration and production giants. Companies like ONGC (Oil and Natural Gas Corporation) and Oil India Ltd will particularly benefit, as they are subject to this tax based on their crude oil output.

In July 2022, authorities initiated the windfall tax mechanism to regulate the activities of private refiners amidst robust refining margins in the international market.

On April 16, due to soaring crude oil prices driven by escalating geopolitical tensions, the government increased the windfall tax on petroleum crude from Rs 6,800 to Rs 9,600 per metric ton.

Although crude prices surged by 16% in the first quarter of 2024, they have since been on a downward trend.

Furthermore, the scope of the windfall tax was extended to include exports of gasoline, diesel, and aviation fuel, following reports of private refineries profiting significantly from overseas sales at the expense of the domestic market.

However, the tax rates for these fuels remain unchanged in the current revision.

Also Read: Elon Musk Criticizes OpenAI’s Integration With iPhones, Expresses Security Concerns

Mankrit Kaur

Recent Posts

The Health Benefits Of Eating Pineapple: A Tropical Superfruit

Pineapple, with its juicy sweetness and vibrant tropical flavour, offers more than just a refreshing…

57 mins ago

India Suspends Indus Waters Treaty Amid Rising Tensions With Pakistan

The Indian government has decided to suspend the Indus Waters Treaty with immediate effect, citing…

1 hour ago

NSE Pledges ₹1 Crore For Pahalgam Attack Victims’ Families; LIC To Fast-Track Claims

The National Stock Exchange (NSE) has pledged ₹1 crore to support families of those killed…

10 hours ago

Netanyahu To Meloni, Top World Leaders Dial PM Modi To Condemn Pahalgam Terror Attack

Top global leaders called Prime Minister Narendra Modi on Thursday to condemn the Pahalgam terror…

11 hours ago

J&K All-Party Meet Backs Centre, Lauds Kashmiris For Supporting Tourists After Pahalgam Terror Attack

An all-party meeting held in Srinagar on Thursday passed a resolution extending full support to…

12 hours ago

Mukesh Ambani Condemns Pahalgam Terror Attack; Offers Free Treatment To Victims

Reliance Industries Chairman and Managing Director  Mukesh  Ambani on Thursday denounced the 22 April terrorist attack…

13 hours ago