New Delhi: The Centre slashed the windfall tax on domestically produced crude oil to Rs 1,850 per mt from Rs 2,100 per mt, bringing down the tax by 1.9 per cent, with effect from August 31, 2024. The windfall tax on diesel and air turbine fuel (ATF) remained zero.
This is the second straight cut down in windfall tax, the moniker for special additional excise duty, on petrol from Rs 4,600 per mt to Rs 2,100 per mt.
What is windfall tax?
The Centre in 2022 rolled out the windfall tax on petroleum, diesel and ATF in a bid to ensure adequate domestic availability of crude oil. India is a key destination for refining foreign crude.
At the time, global crude oil prices crossed the $100 per barrel mark owing to the escalation of hostilities between Ukraine and Russia into a full-blown war. After the initial hiccups related to crude supply, India streamlined its crude oil availability by purchasing actively from Russia even as the West sanctioned the Ural crude. Since then, the Centre has issued windfall tax revision on a fortnightly basis in line with global crude oil prices.
Crude oil prices today
Brent crude prices were down 2.40 per cent to 76.93 per barrel while WTI crude oil prices were down 3.11 per cent to Rs 73.55 per barrel. Crude oil prices moderated on Friday amid expectations of a US Federal Reserve rate cut next week as well as a potential output ramp-up by oil-producing group OPEC+, Reuters reported.
OPEC gave lower guidance with respect to oil demand in 2024 at 2.11 million barrels per day comapred to an estimated 2.25 million bpd. The 2025 demand forecast stood at 1.78 million bpd compared to previous estimates of 1.85 million bpd, ING analysts said, citing OPEC statements.
The Centre slashed the windfall tax on domestically produced petroleum to Rs 1,850/mt from Rs 2,100/mt effective August 31, 2024. Here’s why Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
