India cut windfall tax on crude oil

neerajsingh18

Apr 4

India cut windfall tax on crude oil

The Government of India has released a notification regarding its decision to cut all windfall tax on crude oil from 3,500 rupees ($42.56) per tonne.

India was already imposed the windfall tax on crude oil producers and levies on exports of gasoline, diesel and aviation fuel in July. Imposing the windfall tax on crude oil decision made after some refiners were desired for gains from robust refining margins in overseas markets and discouraged to sell it in the country.

Crude oil:

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).
Crude oil is a mixture of hydrocarbons in liquid material which is getting out from the natural underground reservoirs.
The tax rates are considered every 15 days based on average oil prices in the previous two weeks.

What is ATF?

ATF is an acronym of Air Turbine Fuel or Aviation Turbine Fuel which is uses in aircraft powered by gas-turbine engines.

Windfall profit taxes:

In July, India imposed windfall profit taxes first time as India became a part of nations that tax super normal profits of energy companies.
The government imposes tax on windfall profits over any price earned above a USD 75 per barrel on oil producers.
The levy on fuel exports is calculated on margins that refiners get on overseas shipments. Difference between the international oil prices realization and the cost is known as margins.