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Home / Business / Modi government hikes windfall tax on crude oil by 37.5 per cent

Modi government hikes windfall tax on crude oil by 37.5 per cent

Govt notification shows levy on diesel includes Rs1.50 per litre road infrastructure cess
Representational image.
Representational image.
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Our Special Correspondent   |   New Delhi   |   Published 16.10.22, 01:29 AM

The Modi government on Saturday hiked the windfall tax on domestically produced crude oil by 37.5 per cent to Rs 11,000 per tonne to be effective from October 16 and re-introduced the levy on overseas shipment of jet fuel (ATF) in line with rising international oil prices.

At present, the windfall tax on petroleum levied in the form of special additional excise duty is Rs 8,000 a tonne on crude produced by firms such as the state-owned ONGC.

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In the fortnightly revision of the windfall tax, the government also doubled the rate on the export of diesel to Rs 12 per litre from Rs 5 a litre.

The levy on jet fuel, which was brought down to nil at the beginning of this month, was re-introduced at Rs 3.50 a litre.

The levy on diesel includes Rs1.50 per litre road infrastructure cess, the government notification showed.

The increase in windfall tax and export duties comes despite a continued subdued trend in global prices. Brent prices in the past two weeks have largely been volatile.

Although it is now above$90 per barrel, the trend is still tepid with fresh Covid-19-related restrictions in China and concerns of a global recession. On Friday, the December contract of Brent on the Intercontinental Exchange closed at$91.63 per barrel, lower by 3.11per cent from its previous close.



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