The amount of windfall profit tax charged on locally produced crude oil, as well as on the export of diesel and ATF, has been decreased by the governments.
The windfall tax on crude oil was reduced from Rs 5,050/tonne to Rs 4,350, while the special additional excise duty on ATF was decreased from Rs 6/liter to Rs 1.50/L. Diesel's special additional excise charge has been reduced from Rs 7.50 per L to Rs 2.50 per L.
Diesel's special additional excise charge has been reduced from Rs 7.50 per L to Rs 2.50 per L. The government increased the windfall tax on locally produced crude oil, as well as the export of diesel and ATF, on February 4.
On July 1, India introduced its first windfall profit tax, joining an increasing number of countries that tax energy companies' higher-than-average profits.
According to
export import data, The export taxes at the time were Rs 6 per liter (USD 12 per barrel) for gasoline and ATF and Rs 13 per liter (USD 26 per barrel) for diesel.
Additionally, a windfall profit tax of Rs 23,250 per tonne (USD 40 per barrel) was imposed on domestic crude production. The very first review eliminated the gasoline export tax. Every two weeks, the tax rates are adjusted based on the two-week average of oil prices.
The government imposes tax on oil producers' unforeseen gains on any price they receive that is more than a cap of USD 75 per barrel.
The tax on petroleum exports is calculated based on the margins or cracks that refiners make from international shipments. These margins are largely the difference between the cost and the realized international oil price.
