The government has increased the windfall tax on the sale of domestically-produced crude oil from ₹6,700 to ₹10,000 per ton, effective from September 16. Additionally, the special additional excise duty (SAED) on aviation turbine fuel (ATF) has been reduced from ₹4 to ₹3.50 per litre, also starting from September 16, as per a notification issued by the government on September 15.
The notification further mentions that the SAED on diesel has been reduced from ₹6 per litre to ₹5.50 per litre. However, the SAED on the export of petrol will remain at zero. In the previous update on September 2, the government had lowered the SAED on crude petroleum from ₹7,100 per ton to ₹6,700 per ton.
It’s worth noting that the government initially imposed windfall taxes on the sale of domestically produced crude oil starting from July 1, 2022, in response to the substantial profits earned by oil exploration and production companies due to the multi-year high crude oil prices following Russia’s invasion of Ukraine.
As reported by india.com, international crude oil prices have been steadily increasing as oil-producing nations like Saudi Arabia and Russia extended their voluntary oil output cuts until the end of the year. Oil prices have reached a new ten-month high for the fifth consecutive session and are set to record a third consecutive weekly gain. This increase in prices is driven by supply constraints resulting from Saudi Arabian production cuts and positive expectations regarding Chinese demand.
