The cemtral government has slashed special additional excise duty (SAED) on crude petroleum to Rs 9,050/tonne with effect from October 18. In the last fortnightly review on September 29, windfall tax on domestically produced crude oil was set at Rs 12,100/tonne, as PTI reported.
In addition, the windfall tax on the export of diesel has been reduced to Rs 4 per litre, from Rs 5 per litre. Also, the Centre cut the duty on aviation turbine fuel (ATF) to Rs 1 per litre from Rs 2.5 per litre. SAED on petrol will continue at nil.
The government had raised the windfall tax on petroleum crude to Rs 12,100 per tonne from Rs 10,000 per tonne on September 30.
India first imposed windfall profit taxes on July 1, 2022. This decision was prompted by significant profits earned by oil production companies, driven by multi-year high crude oil prices following Russia's invasion of Ukraine.
The Centre later extended the tax imposition on gasoline, diesel, and ATF exports after private refiners expressed interest in raking in profits from the strong refining margins in the overseas markets, instead of selling in the domestic market.
The government has managed to collect nearly Rs 40,000 crore in SAED imposed on crude oil production and petroleum products exports since July last year.
Global oil benchmark Brent crude jumped 3.36 per cent to $92.92 a barrel, mostly because of geopolitical tensions in the Middle East.
Meanwhile, crude oil futures on Tuesday declined 0.48 per cent to Rs 7,204 per barrel as participants trimmed their positions on low demand. On the Multi Commodity Exchange, crude oil for October delivery fell Rs 35 or 0.48 per cent to Rs 7,204 per barrel with a business volume of 3,748 lots.
Globally, West Texas Intermediate crude oil was trading 0.20 per cent lower at $86.49 per barrel, while Brent crude was trading down at 0.09 per cent to $89.57 per barrel in New York.