Government gave relief to oil companies, reduced windfall tax on crude oil

New Delhi: The central government imposes windfall tax on crude oil. The government has reduced the windfall tax today. Now suddenly the tax on crude oil has increased to Rs 5700 per tonne. Earlier it was Rs 8,400 per tonne.

This is the second consecutive fortnightly cut in windfall tax after the cut from Rs 9,600 to Rs 8,400 per metric tonne on May 1. Let us tell you that this tax is imposed in the form of Special Additional Excise Duty (SAED).

This tax is also imposed on the export of diesel, petrol and jet fuel (ATF). Currently there is zero duty on export of diesel, petrol and ATF. According to the official notification, the prices of crude oil have come into effect from 16th May 2024 i.e. today.

price of crude oil What ?

Benchmark Brent crude prices are currently just above $82 per barrel. Due to the increase in oil prices, the government had on April 16 increased the windfall tax on petroleum crude from Rs 6,800 to Rs 9,600 per metric tonne.

What is windfall tax?

The government had started imposing tax on crude oil products like gasoline, diesel and ATF from July 1, 2022. This tax was introduced to control private refiners.

Actually, companies wanted to sell fuel abroad to take advantage of refining margins. To stop this, the government imposed a windfall tax.