Windfall tax on crude oil hiked to ₹10,000 per tonne, export duty on ATF reduced to ₹3.5/litre

As per the notification, the SAED on diesel has ben cut from 6/liter to Rs. 5.50/litre. The SAED on export of petrol will continue to be zero. In the previous fortnightly review on September 2, the government had cut the SAED on crude petroleum to ₹6,700 per tonne from ₹7,100 per tonne.

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.

International crude prices have been on a rising spree ever since oil producers Saudi Arabia and Russia extended their voluntary oil output cuts till the end of the year. On Friday, oil prices rose to a fresh 10-month high for the fifth straight session and were on track to record a third weekly gain as supply tightness driven by Saudi Arabian production cuts combined with optimism around Chinese demand.

WTI futures were up 45 cents, or 0.5 per cent, to $90.61 a barrel and Brent futures were up 4 cents to $93.74 a barrel. Brent futures rose to a 10-month high as $94.63 earlier in the session, their highest since November 2022. Both contracts are up about 4 per cent for the week, and on pace for their biggest quarterly increase since the first quarter of 2022.

Updated: 15 Sep 2023, 10:22 PM IST