160% Increase In Duty On Petroleum Crude; Center Ends Windfall Tax Slashing Streak

160% Increase In Duty On Petroleum Crude; Center Ends Windfall Tax Slashing Streak

According to a notification released on Monday, the Indian government increased the windfall tax on crude petroleum to 6,000 rupees (USD 72) per metric ton from 3,250 rupees. The increase took effect on July 2.

G R MukeshUpdated: Tuesday, July 02, 2024, 09:12 AM IST
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According to a notification released on Monday, the Indian government increased the windfall tax on crude petroleum to 6,000 rupees (USD 72) per metric ton from 3,250 rupees. The increase took effect on July 2.

For diesel and aviation turbine fuel, the windfall tax, which is adjusted every two weeks, stayed at zero.

The windfall tax on crude petroleum was reduced by India on June 15 from Rs 5,200 per ton to Rs 3,250 per ton.

In order to control private refiners who wished to sell fuel overseas rather than domestically in order to benefit from strong refining margins, India began taxing the production of crude oil and the export of gasoline, diesel, and aviation fuel in July 2022.

Windfall tax increased

The center has decided to turn away from windfall tax cuts, and instead of continuing to slash down this time, Delhi has increased the windfall tax from Rs 3250 per tonne to a whopping Rs 5200 per tonne. There was a massive 160 per cent jump from the previous rate of Rs 3250 per tonne.

Cooking gas

Rates have dropped for the fourth consecutive month. On June 1, the cost was reduced by Rs. 69 per cylinder. Rates had previously been lowered by Rs 19 per cylinder on May 1 and Rs 30.5 on April 1.

However, the cost of cooking gas in residential homes stayed the same at Rs 803 for a 14.2-kg cylinder.

Previous tax rate.

The windfall tax on petroleum crude was reduced by the government on May 1st from Rs 9,600 to Rs 8,400 per metric ton. That implies a reduction of 12.5 per cent from the preceding two weeks.

The most recent cutdown in windfall tax was even lower than before, down to 67 per cent from Rs 9600 and 37.5 per cent from the previous rate of Rs 5200 per tonne to Rs 3250 per tonne.

Fuel prices across India

Petrol rates were reported as follows: Rs 102.86, Rs 94.24, Rs 100.75, Rs 104.95, Rs 103.44, and Rs 94.72 in Bangalore, Chandigarh, Chennai, Kolkata, Mumbai City, and New Delhi, respectively.

The diesel for Bangalore, Chandigarh, Chennai, Kolkata, Mumbai City, and New Delhi was approximately Rs 88.94, Rs 82.40, Rs 92.34, Rs 91.76, Rs 89.97, and Rs 87.62, respectively.

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