Centre slashes windfall tax on crude oil by 36%
1 min read 02 May 2023, 12:07 PM ISTIndia's trade parity pricing of crude oil allows producers and refiners to realize global prices in the local market, enabling the government to share a portion of the gains from surging global prices
PremiumNew Delhi: The Central Board of Indirect Taxes and Customs (CBIC) has reduced the windfall tax on crude oil production by around 36% to ₹4,100 per tonne, according to an official order.
The change takes effect on Tuesday, with the previous rate at ₹6,400 per tonne. The tax, revised fortnightly, aims to collect part of the super profits made by producers during global price surges.
The decision was taken in public interest, the order said.
No changes were announced for special additional excise duty on exports of diesel, petrol, or jet fuel.
The Indian crude oil basket, representing prices of Oman and Dubai for sour grades and Brent for sweet grades, was at $80.31 a barrel on 28 April, down from $86.09 on 17 April, according to data from the Petroleum Planning and Analysis Cell.
India's trade parity pricing of crude oil allows producers and refiners to realize global prices in the local market, enabling the government to share a portion of the gains from surging global prices.
On Tuesday in Asian deals, oil prices held steady amid mixed data from China, and as the market weighed forecasts of declining crude stockpiles with expectations of a U.S. interest rate hike, according to a Reuters report. Brent crude was up by 7 cents to $79.38 a barrel by 0425 GMT, the report said.