Seattle Indian Community - SeattleIndian
| | | | | | | | | | | |
 


 

ONGC, Oil India to get relief as Centre cuts windfall tax on crude oil

Author : IANS

Read Latest News and Articles

Share With Your Friends



Add an Article

View All Contributions

Add To My Favorite

Add A Picture

New Delhi, May 16 (IANS) The Central government has cut the windfall tax on petroleum crude to 5,700 rupees ($68.34) per metric ton from 8,400 rupees with effect from Thursday, as part of its fortnightly revision that is calibrated with global prices.

This is the second fortnightly cut in windfall tax in a row after a Rs 8,400 per metric ton reduction from Rs 9,600 on May 1.

Upstream oil exploration and production companies ONGC and Oil India Ltd will gain as they will have to pay a lower tax on their crude oil output.

The tax has been scaled down as crude oil prices have declined in the international market and the earnings of oil producers have also come down. Prices of the benchmark Brent crude are currently hovering at a little over $82 per barrel.

The government had on April 16 raised the windfall tax on petroleum crude to Rs 9,600 a metric ton from Rs 6,800 due to the sharp increase in oil prices at the time.

The windfall tax on crude was introduced for the first time in July last year as a sudden spike in prices had increased the earnings of the oil companies and the government wanted to tap part of this gain to reduce the fiscal deficit.

The windfall tax was extended to exports of petrol, diesel and aviation fuel after private refineries started raking in big gains from overseas markets, instead of selling the fuels in the domestic market.

The government has left the windfall tax on these fuels unchanged in the current round.

--IANS

sps/kvd


Copyright and Disclaimer: All news and images appearing in our news section, search engines and social media are provided by IANS. If you face any issues related to the content/images, please contact our news service provider directly. We are not liable/responsible for any content/images related to the news service provider.

Premium Advertiser
Restaurants - Kanishka Cuisine of India



This is an advertisement


Latest News

View More News


More News Articles

T20 World Cup: Day matches will even out everything, says RP Singh

Cast of 'Chhota Bheem and the Curse of Damyaan' attend special screening in Mumbai

T20 World Cup: With Bumrah, Arshdeep, Jadeja and Kuldeep, Indian bowling attack will dominate, says Rahul Sharma

Shakib Al Hasan hopes to play 2026 T20 World Cup

Gurpreet Ghuggi cites 'increased professionalism' behind growth of Punjabi film industry