The Central government on Wednesday hiked windfall tax on domestically produced crude oil. Alongside this, the centre also reduced the rate on export of diesel, as per an official notification. The change is being considered effective from today – November 17, 2022.
According to the official notification, the tax on crude oil produced by firms like state-owned Oil and Natural Gas Corporation (ONGC) was hiked to Rs 10,200 per tonne from the previous Rs 9,500 per tonne.
While this is reportedly a fortnightly revision of windfall tax, changes have not been made to jet fuel or ATF. As per a PTI report, the export tax on jet fuel which was set at Rs 5 a litre in the last review on November 1, still stays unchanged. However, Centre has cut the rate on export of diesel to Rs 10.5 per litre, from the previous Rs 13 per litre.
As per PTI, India first imposed windfall profit taxes on July 1, marking another change as the country joined a list of nations that tax super normal profits of energy companies. The report reads, “At that time, export duties of Rs 6 per litre ($12 per barrel) each were levied on petrol and aviation turbine fuel and Rs 13 a litre ($26 a barrel) on diesel. A Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied.”
Before the current changes, the duties were reportedly somewhat adjusted on July 20, August 2, August 19, September 16 and on few more occasions.