Don’t miss the latest developments in business and finance.

RIL, Oil India and ONGC advance after Govt slashes windfall tax on crude, ATF

Image
Capital Market
Last Updated : Dec 16 2022 | 9:16 PM IST

Oil Explorer stocks were in demand on Friday after the Central Government on Friday (16 December 2022) slashed the windfall tax on petrol, diesel, jet fuel and crude oil following a decline in international rates.

Reliance Industries (up 0.53%), Oil India (up 0.47%) and Oil and Natural Gas Corporation (ONGC) (up 0.17%) edged higher

Effective from today (16 December 2022), the tax on domestic crude oil export has been reduced to Rs 1,700 per tonne from the existing Rs 4,900 per tonne, as per government notification. Tax on aviation turbine fuel (ATF) has been reduced to Rs 1.5 per litre from Rs 5 per litre.

The special additional excise duty on petrol reportedly continues to remain unchaged at 'Nil', while windfall tax on high-speed diesel for exports has reportedly been reduced to Rs 5 per litre from Rs 8 earlier.

The move comes amid a 14% slump in global crude since November. India is the world's third largest consumer and importer of oil.

On 1 July, the Ministry of Finance imposed a cess of Rs 23,250 per tonne (by way of special additional excise duty - SAED) on crude oil produced domestically. It also slapped a Rs 6 per litre tax on the export of petrol and jet fuel (ATF) and Rs 13 a litre on the export of diesel effective 1 July 2022.

With this, India joined a select league of nations globally that have taxed windfall gains accruing to oil companies from soaring energy prices.

Powered by Capital Market - Live News

Also Read

First Published: Dec 16 2022 | 10:32 AM IST

Next Story