Govt scraps windfall tax on domestic crude, hikes export duty on diesel
The government has hiked the export duty on diesel to ₹0.50 per litre from ₹1 per litre.
The government has hiked the export duty on diesel to ₹0.50 per litre from ₹1 per litre.
Following this development, shares of Oil & Natural Gas Limited (ONGC), the country’s largest oil and gas producer surged 4.08% to hit an intra-day high of ₹152 apiece on the Bombay Stock Exchange.
Brent crude oil price has fallen 9.2% in the last two days to $78.01 per barrel, the lowest level since December 12, 2022.
The tax rates are revised every fortnight based on prevailing international rates.
On July 1 this year, the Indian government joined a group of nations that imposed a windfall tax on crude oil owing to soaring energy prices.
The Centre has reduced tax on domestically-produced crude oil to ₹10,500 per tonne from ₹13,300 per tonne; tax levy on diesel lowered to ₹10 per litre.
Shares of ONGC, Reliance, Adani Total Gas, Indraprastha Gas, CPCL, and MRPL saw selling pressure after the govt revised the windfall tax on crude oil
The hike in ATF prices is likely to make air travel more expensive as aviation fuel constitutes around 40% of the running cost of an airline.
Aviation turbine fuel, used to fly airplanes, was raised by 2% to hit an all-time high ₹1,12,924.83 per kilolitre in the Delhi region.
Aviation turbine fuel (ATF) prices witnessed an 18% jump on Wednesday.