Windfall tax on crude oil raised to ₹10,000 per tonne

  • The levy was at 6,700 per tonne for the past two weeks. The new rates would be effective from Saturday, 16 September.

Staff Writer
Updated16 Sep 2023, 06:55 AM IST
Representative image
Representative image(Photo: Reuters)

New Delhi: Centre on Friday increased the windfall tax on the sale of domestic crude oil to 10,000 per tonne.

The levy was at 6,700 per tonne for the past two weeks. The new rates would be effective from Saturday, 16 September.

Further, in a notification, the ministry of finance said that the special additional excise duty (SAED) or duty on the export of diesel will be reduced to 5.50 per litre, from 6 per litre. The duty on jet fuel, will be reduced to 3.5 per litre from 4 per litre. However, the additional duty on the export of petrol will continue at to remain zero.

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. Further, the additional levy on the export of petrol, diesel and jet fuels came in as private refiners were largely selling abroad amid better international prices, instead of the domestic market.

The increase in windfall tax on crude comes at a time when crude prices are above $90 per barrel. Brent is currently around $93.7 per barrel.

The prices are rising amid supply concerns as OPEC+ has resorted to supply cuts and Saudi Arabia and Russia have announced voluntary cuts. Further anticipated demand ahead of the upcoming winters due to heating requirements may also keep the price elevated, experts said.

The International Energy Agency had last month said that the output cuts may erode oil inventories for the rest of 2023, potentially driving prices even higher, before economic headwinds limit global demand growth in 2024.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:16 Sep 2023, 06:55 AM IST
Business NewsNewsIndiaWindfall tax on crude oil raised to ₹10,000 per tonne

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    138.00
    03:57 PM | 14 NOV 2024
    -1.25 (-0.9%)

    Indian Oil Corporation share price

    134.80
    03:59 PM | 14 NOV 2024
    -1.2 (-0.88%)

    Tata Motors share price

    774.25
    03:58 PM | 14 NOV 2024
    -12.15 (-1.55%)

    Bharat Electronics share price

    281.05
    03:57 PM | 14 NOV 2024
    -0.4 (-0.14%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    SKF India share price

    4,507.70
    03:57 PM | 14 NOV 2024
    -364.25 (-7.48%)

    Astrazeneca Pharma India share price

    6,740.65
    03:29 PM | 14 NOV 2024
    -392.45 (-5.5%)

    Torrent Power share price

    1,560.00
    03:29 PM | 14 NOV 2024
    -85.45 (-5.19%)

    P I Industries share price

    4,244.25
    03:29 PM | 14 NOV 2024
    -204.85 (-4.6%)
    More from Top Losers

    DCM Shriram share price

    1,291.05
    03:29 PM | 14 NOV 2024
    104.2 (8.78%)

    Network 18 Media & Investments share price

    84.78
    03:50 PM | 14 NOV 2024
    6.63 (8.48%)

    Eicher Motors share price

    4,885.55
    03:52 PM | 14 NOV 2024
    296.45 (6.46%)

    Jio Financial Services share price

    318.45
    03:58 PM | 14 NOV 2024
    19.05 (6.36%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      75,655.00-1,200.00
      Chennai
      75,661.00-1,200.00
      Delhi
      75,813.00-1,200.00
      Kolkata
      75,665.00-1,200.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      101.03/L0.23
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts