Govt may levy 'windfall tax' on ONGC, OIL to bring down rising fuel prices

Change in contracts and taxes mid-way will affect long-term investor sentiments in India

The government is likely to levy a ‘windfall tax’, in the form of a cess, on companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) to bring down the rising petrol and diesel prices. The move may add additional pressure to oil producers that were already paying a higher cess after the switchover of fixed amount to 20 per cent ad valorem rates in 2016.
 
According to media reports, companies that get paid at international rates for the oil they produce from domestic fields may now be asked to pay windfall tax for any revenue that