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ONGC, OIL to gain as govt cuts windfall tax on crude oil

ONGC, OIL to gain as govt cuts windfall tax on crude oil

New Delhi, Oct 18 (SocialNews.XYZ) The central government has reduced the windfall tax on domestic crude oil with effect from October 18 from Rs 12,200 a tonne to Rs 9,050 in its fortnightly review which will benefit upstream oil companies, including ONGC and Oil India Ltd (OIL).

The windfall tax on petroleum crude was raised to Rs 12,100 a ton from Rs 10,000 with effect from September 30 as oil prices at the time had soared to $95 a barrel. Oil prices came down but have started heading north again in the wake of the Israel-Hamas conflict.

 

The windfall tax on aviation turbine fuel has also been cut from Rs 3.50 a litre to Re 1 and that on diesel from Rs 4 a litre to Rs 3 which is expected to benefit the downstream oil refiners that export petroleum products.

The government first imposed the windfall tax on crude oil producers in July last year and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners started making gains from robust refining margins in overseas markets, instead of selling at home.

Source: IANS

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ONGC, OIL to gain as govt cuts windfall tax on crude oil

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