The government had first imposed windfall tax in July 2022 to tax the profits of crude oil producers when the crude oil prices went high globally on the back of Russia-Ukraine conflict.
The Centre on Wednesday cut the windfall tax levied in the form of Special Additional Excise Duty (SAED) on domestically produced crude to Rs 8,400 per tonne from Rs 9,600 per tonne with immediate effect.
As per the notification, the windfall tax, however, remains unchanged at nil for diesel and aviation fuel turbines. On April 16, the government had raised the windfall tax to Rs 9,600 a tonne from Rs 6,800.
Windfall tax is reviewed every fortnight on the basis of oil prices and fuel margins in the international market. An increase in windfall tax comes against the prospects of upstream oil companies such as Oil and Natural Gas Corp and Oil India. The government levies windfall tax when an industry earns large profits unexpectedly. The government had first imposed windfall tax in July 2022 to tax the profits of crude oil producers when the crude oil prices went high globally on the back of Russia-Ukraine conflict.
Commercial LPG cylinder Rs 19 cheaper now
State-owned oil marketing companies on Wednesday reduced the prices of commercial LPG (liquified petroleum gas) by `19 with immediate effect. With the latest price cuts, the retail sale price of a 19 kg commercial LPG cylinder in Delhi stands at `1,745.50 from earlier `1,764.50. In Mumbai, it will now cost `1,698.50, down from `1,717.50 last month.
In Chennai, it will now costs Rs 1,911 while in Kolkata it will be priced at `1,859. The commercial LPG prices in Kolkata have been reduced by Rs 20. The price of aviation turbine fuel(ATF) was hiked by a marginal 0.7% to `101,642.88 per kl.
The move comes against a decline in the global crude oil prices owing to increased inventories in the US and anticipation of easing of tensions in the Middle East.
Typically, OMCs revise the prices of both commercial and domestic LPG cylinder on the first of every month.
In April, the commercial LPG prices were cut by Rs 30 taking the then commercial LPG price in New Delhi to `1,764.50. Price of the 5 kg FTL (Free Trade LPG) cylinder was lowered by `7.50.
Source:financialexpress.com