India has upped the ante on its windfall tax for petroleum crude, signaling a move to bolster revenue streams amidst fluctuating global oil prices. Effective April 16, the tax surged to 9,600 rupees ($114.99) per metric ton, a significant jump from the previous 6,800 rupees, as announced by the government on Monday.
In a bid to strengthen its fiscal footing, the Indian government has implemented a notable increase in the windfall tax imposed on petroleum crude, marking a proactive measure to navigate the volatility of global oil markets. As of April 16, the tax has been elevated to 9,600 rupees ($114.99) per metric ton, a considerable rise from its previous standing at 6,800 rupees, as confirmed by official sources on Monday.
This revision, which is subject to fortnightly adjustments, notably excludes diesel and aviation turbine fuel, maintaining their windfall tax at zero. This move follows a similar hike enacted on April 4, where the tax on petroleum crude was escalated from 4,900 rupees to 6,800 rupees per metric ton.
The inception of this tax regime dates back to July 2022, aimed at regulating private refiners’ activities concerning the export of gasoline, diesel, and aviation fuel. The overarching objective has been to encourage domestic fuel consumption by discouraging excessive exports, particularly in light of favorable refining margins enticing refiners to prioritize foreign markets over local ones.
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