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India Trims Windfall Tax on Diesel, Exports of Jet Fuel

India has cut a windfall tax levied on oil companies and kept petrol out of an export levy less than a month after it introduced the two regulations.


India has cut a windfall tax levied on oil companies and kept petrol out of an export levy less than a month after it introduced the two regulations.
A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India. The changes will help companies such as Reliance Industries, Oil and Natural Gas Corp and Oil India. File photo: Francis Mascarenhas, Reuters.

 

India scrapped a a windfall tax levied on oil companies and kept petrol out of an export levy less than a month after it introduced the two regulations.

The government said it scrapped an export tax of 6 rupees, or 8 US cents, a litre on petrol.

Windfall tax on diesel and aviation-fuel exports would be cut by 2 rupees a litre, the government said in its statement.

Tax on domestically produced crude oil would be cut to 17,000 rupees a tonne from 23,250 rupees, it added.

All changes took effect on July 20 and will help companies such as Reliance Industries, Oil and Natural Gas Corporation and Oil India.

On July 1, India imposed the windfall tax on oil producers and refiners that had boosted product exports to gain from higher overseas margins. It also applied the export levy at that time.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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