Windall tax on crude oil increased to ₹7,100 per tonne

New Delhi: The union ministry of finance has increased the windfall tax on sale of locally produced crude oil to ₹7,100 per tonne.

For the past two weeks, the windfall tax on domestically produced crude oil was ₹4,250 per tonne. The increase would come into effect from 15 August.

Further, the Special Additional Excise Duty (SAED) or duty on export of diesel has also been increased to ₹5.50 per litre from Re 1 per litre. A duty of ₹2 a litre has also been reimposed on aviation turbine fuel showed a government notification.

The special additional excise duty would continue to remain at zero.

The increase in windfall tax on the sale of domestic crude comes with the recent rise in international crude oil prices prices. Over the past one month, the benchmark Brent has increased from nearly $79 per barrel to over $86 per barrel.

The rise in international prices comes on the back of supply concerns post voluntary cuts by Saudi Arabia and Russia.

Centre first imposed the windfall taxes on the sale of locally produced crude oil with effect from July 1, 2022 as oil exploration and producing companies made heavy profits amid multi-year high crude oil prices post Russia's invasion of Ukraine.

International prices have however declined significantly since last year, but in the past one month, they have somewhat increased amid supply concerns. However, concerns of a global demand slowdown are likely to cap the increase in prices.