Govt again hikes windfall tax on petroleum crude to ₹9,600 per tonne
Notably, diesel and aviation turbine fuel will remain unaffected and maintain a zero windfall tax rate
Notably, diesel and aviation turbine fuel will remain unaffected and maintain a zero windfall tax rate
OMCs have slashed petrol and diesel prices across the country by ₹2 per litre for the first time in two years since April 2022.
In FY23, India spent $157.5 billion on importing 232.7 million tonnes of crude oil.
Oil prices are expected to average $90 a barrel in the current quarter before declining to an average of $81 a barrel next year as global economic growth slows.
High crude oil prices will weaken the profitability of the three state-owned oil marketing companies in India, says Moody's.
CEA V. Anantha Nageswaran says if the global economy slows down, as IMF and others have projects, then commodity prices should retreat on monetary tightening
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.
States gained ₹49,229 cr from VAT revenue on fuel when oil prices were increasing and they will forego only ₹15,021 cr after oil price has been downwardly adjusted through excise cut by the Centre.
The government is committed to use the deploy strategic petroleum reserves to contain market volatility, says the finance ministry.
Though, Russia is a marginal trade partner with barely 1.4% of India's import and 0.9% of exports, spike in crude and commodity prices will elevate inflation and dent consumer demand.