The government of India has revised the windfall tax on domestically-produced crude oil and the export of diesel and Aviation Turbine Fuel (ATF).
The windfall tax on locally produced crude oil has been reduced, according to the notification, from Rs 13,300 per tonne to Rs 10,500 per tonne, while the export duty on diesel has been decreased from Rs 13.5 to Rs 10 per litre. In addition, the export duty on jet fuel has been reduced from Rs. 9 per litre to Rs. 5 per litre.
The notification further stated that the new pricing would be in effect beginning on Saturday, September 17. After the international oil prices fell to six-month lows in September, the windfall profit tax was decreased. The average price of the crude oil that India purchases has decreased to usd 92.67 per barrel in September from USD 97.40 in August.
On July 1, India introduced its first windfall profit tax, joining an increasing number of countries that tax energy companies' higher-than-average profits. The profit margins of both oil producers and refiners have declined since then due to the cooling of the global oil market.
Petrol and aviation turbine fuel were subject to export charges of Rs 6 per litre (USD 12 per barrel), while diesel was subject to customs of Rs 13 per litre (USD 26 per barrel). Also, a windfall profit tax of Rs 23,250 per tonne (USD 40 per barrel) was imposed on domestic crude production.
Earlier, the tariffs were withdrawn for petrol and were partially modified in four rounds on July 20, August 2, August 19, and September 1. The fifth fortnightly evaluation shows the most recent decline in domestic crude oil production as well as exports of diesel and ATF.
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