The government on Thursday raised the windfall tax on domestically-produced crude oil to Rs 10,200 per tonne from Rs 9,500, taking into account the marginal increase in global crude prices in the ninth fortnightly review of the one-off taxes on oil companies.
However, it lowered the levy (special additional excise duty) on the export of diesel to Rs 10.5 per litre from Rs 13. The levy on the export of jet fuel was kept unchanged at Rs 5 per litre, in tandem with the change in refining margins in the last fortnight.
The Indian basket of crude oil prices, which averaged $91.7/bbl in October, rose marginally to an average $91.74/bbl so far in November.
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The taxes were introduced on July 1, as the government felt that the elevated crude prices were allowing oil companies to make windfall profits and that the exchequer must get a share of such gains.
In the previous review a fortnight ago, the government had raised the windfall tax on the export of diesel to Rs 13 from Rs 12 per litre, and on jet fuel to Rs 5 from Rs 3.5 per litre, as refining margins increased.
It, however, had reduced the levy on domestically-produced crude oil to Rs 9,500 from Rs 11,000 per tonne, taking into account global crude prices moderation in the eighth fortnightly review.
While private refiners Reliance Industries and Rosneft-backed Nayara Energy are the principal exporters of diesel and ATF, the windfall levy on domestic crude targets producers like state-owned ONGC and Vedanta-controlled Cairn.
On July 1, the Centre imposed special additional excise duty of 23,250/tonne on crude and export taxes on petrol, diesel and ATF at6/litre, 13/litre and6/litre, respectively. The tax on petrol was removed subsequently. No windfall tax is applicable on exports from special economic zones.
The taxes have been revised on a fortnightly basis since then, depending on crude prices and the refining spread.