India Increases Windfall Tax on Crude Petroleum
OIL & GAS

India Increases Windfall Tax on Crude Petroleum

A notification was issued stating that the Indian government had decided to increase the windfall tax on petroleum crude from Rs 3,250 to Rs 6,000 per metric tonne, effective from July 2. This decision followed a recent reduction in the windfall tax rate from Rs 5,200 to Rs 3,250 per metric tonne, which had been implemented earlier on June 15.

It was further explained that the windfall tax rate is revised every fortnight, indicating a dynamic approach to regulating the taxation on petroleum crude in response to market conditions. Starting in July 2022, India began imposing taxes on the production and export of gasoline, diesel, and aviation fuel. This measure was introduced to ensure that private refiners did not prioritize exporting fuel over meeting domestic demand, especially when there were lucrative refining margins to be gained internationally.

The policy aimed to maintain a balance between domestic fuel availability and export profitability for private refiners. By taxing crude oil exports and production, the government sought to prevent market distortions that could arise from excessive international sales, which might otherwise lead to shortages or price hikes in the domestic market.

Overall, the adjustments in the windfall tax and the introduction of new taxes on fuel exports reflected India's strategy to manage its energy resources effectively and protect its domestic market from speculative price fluctuations and supply disruptions.

A notification was issued stating that the Indian government had decided to increase the windfall tax on petroleum crude from Rs 3,250 to Rs 6,000 per metric tonne, effective from July 2. This decision followed a recent reduction in the windfall tax rate from Rs 5,200 to Rs 3,250 per metric tonne, which had been implemented earlier on June 15. It was further explained that the windfall tax rate is revised every fortnight, indicating a dynamic approach to regulating the taxation on petroleum crude in response to market conditions. Starting in July 2022, India began imposing taxes on the production and export of gasoline, diesel, and aviation fuel. This measure was introduced to ensure that private refiners did not prioritize exporting fuel over meeting domestic demand, especially when there were lucrative refining margins to be gained internationally. The policy aimed to maintain a balance between domestic fuel availability and export profitability for private refiners. By taxing crude oil exports and production, the government sought to prevent market distortions that could arise from excessive international sales, which might otherwise lead to shortages or price hikes in the domestic market. Overall, the adjustments in the windfall tax and the introduction of new taxes on fuel exports reflected India's strategy to manage its energy resources effectively and protect its domestic market from speculative price fluctuations and supply disruptions.

Next Story
Infrastructure Transport

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Next Story
Infrastructure Urban

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Next Story
Infrastructure Transport

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000