Indian Government To Remove Windfall Taxes On Crude Oil
Following a government announcement issued on Tuesday, India reduced its windfall tax on crude oil to zero from Rs 3,500 ($42.56) per tonne and half the duty on diesel to 0.5 rupee per litre.
In July, India placed a windfall tax on crude oil producers as well as exports of petrol, diesel and aviation fuel to encourage private refiners to sell fuel products domestically rather than sending them outside to capitalise on high refining margins in global markets.
The government alters tax rates twice a month in response to changes in global crude oil prices.
The windfall tax on aviation turbine fuel (ATF) and gasoline exports, which had previously been reduced to zero, remained intact, according to the announcement.
A top government official told last year that the administration wants to repeal the windfall tax whenever global crude oil prices fall below $70 per barrel.
Brent crude oil prices fell around $70 per barrel last month, a 15-month low, on worries of waning demand, but have since risen above $85 following the OPEC+ group's decision to cut output.