India Hikes Windfall Tax on Petroleum Crude to ₹9,600

16 Apr 2024 , 01:15 PM

The windfall tax on petroleum oil was raised by the Indian government on Monday, April 15, from ₹6,800 to ₹9,600 per metric ton, with effect from April 16. The tax adjustment for diesel and aviation turbine fuel, which takes place every two weeks, will stay at zero.

The windfall tax on petroleum oil was increased by the government earlier on April 4 from ₹4,900 to ₹6,800 per metric ton. The implementation of a Special Additional Excise Duty (SAED) on domestic producers of crude oil is one way that the tax burden has increased.

Prior to this, on March 15, 2024, the Finance Ministry increased the windfall tax to ₹4,900 per tonne for the sale of domestic crude oil. This modification signified an increase from the special additional excise duty (SAED) of ₹4,600 per tonne for the previous two weeks.

The Indian government levied a windfall tax on producers of crude oil in July 2022. Later, this tax was extended to include aircraft turbine fuel (ATF), diesel, and gasoline exports. This policy tries to prioritize supply to the home market and discourage private refiners from taking advantage of high worldwide prices to sell these fuels overseas. Every two weeks, the government modifies the windfall tax rate.

For feedback and suggestions, write to us at [e-mail]