In a recent development, the Central Government has made adjustments to the windfall tax on domestically produced crude oil.
The revised windfall tax has been increased from Rs 6,700 per tonne to Rs 10,000 per tonne.
Additionally, the export duty on diesel has been reduced from Rs 6 to Rs 5.50 per liter, while the duty on Aviation Turbine Fuel (ATF) has seen a decrease from Rs 4 to Rs 3.50 per liter.
These new rates will take effect from September 16, following changes made on September 2.
Windfall Tax Reduction
Earlier this month, the government had reduced the windfall tax on domestically produced crude petroleum from Rs 7,100 per tonne to Rs 6,700 per tonne.
Export Duty on Petrol and Diesel
On July 1, 2022, the government had introduced an export duty of Rs 6 per liter on petrol and ATF, along with Rs 13 per liter on diesel exports.
Furthermore, a windfall tax of Rs 23,250 per tonne was imposed on domestic crude oil sales.
The Central Government has been reviewing these levies every two weeks based on international crude oil prices.
Global Crude Oil Trends
Internationally, the price of crude oil has been on the rise, with several countries reducing their crude oil production.
WTI crude oil is currently priced at $90 per barrel, while Brent crude oil stands at $94 per barrel.
Notably, the Central Government had initially imposed the windfall tax on crude oil sales on July 1, 2022.
This move aligns with similar actions taken by several other countries, including the UK, Italy, and Germany, which have also imposed windfall taxes on energy companies’ extraordinary profits.