As US dollar rates fell thanks to hopes of the Federal Reserve going slow on interest rate hikes, the country’s oil exports increased to 5.1 million barrels a day, triggering a rise in crude prices. On the other hand continued uncertainty over demand from China prevented oil rates from rising too high. Meanwhile petrol and diesel prices for India aren’t moving in any direction despite global fluctuations, even as the country buys discounted oil from Russia.
India increases windfall tax for domestic oil
As fuel companies recover from a record loss earlier this year caused by price stagnancy, the Indian government has hiked windfall tax on domestic crude by Rs 3000 per tonne. It has also increased the tax on export of diesel by Rs 7 per litre, while reintroducing a Rs 3.5 per litre levy on the outflow of jet fuel from India.
Months after excise duty cuts changed fuel rates, Delhi is selling the cheapest petrol at Rs 96.72 a litre, while diesel is priced at Rs 89.62 per litre.
It was followed by Chennai at Rs 102.63 per litre for petrol and Rs 94.24 a litre for diesel.
Kolkata has costlier petrol at Rs 106.03 a litre, while diesel prices are lower than Chennai at Rs 92.76 per litre.
Financial capital Mumbai’s fuel prices are the highest at Rs 106.31 for petrol and Rs 94.27 a litre for diesel.
Should gains reflect in compensations?
According to a Financial Express report, the windfall tax from state-owned and private oil producers has fetched Rs 40,000 crore for the government in FY23. The state on its part will be supporting big three oil firms with a Rs 22,000 crore compensation.
As India moves towards greener options through its EV push, one in 10 petrol pumps across the country is now equipped with CNG stations or charging points.