News Oil & Gas

Business News, Strategy, Finance and Corporate Insight

[ad_1]

The FinMin reviews cess levy fortnightly taking into view the global crude oil prices. The price of Brent and U.S. crude has witnessed a sharp correction in the last one month, with international benchmark Brent falling below $90 per barrel, its lowest level since early February this year, amid concern that the global economic slowdown will weigh on the demand outlook. In Asian trading hours on Monday, the Brent oil for November delivery was quoting at $92.3 a barrel, up 0.8%, while the U.S. West Texas Intermediate (WTI) crude October futures rose 0.96% to $85.58 a barrel.

The finance ministry, in its last notification on August 31, had increased the windfall tax on domestically produced petroleum crude to ₹13,300 per tonne from ₹13,000 earlier. The tax on diesel export was increased to ₹13.5 per litre from ₹9 per litre earlier, and the ATF export levy, which was ₹2 per litre earlier, was hiked to ₹9 per litre.

The Centre first introduced a cess of ₹23,250 per tonne by way of special additional excise duty (SAED) on domestically produced crude oil on July 1, 2022. Import of crude oil was not subject to this cess. The centre decided to impose a windfall tax on oil export to tap into the huge profits oil producers and refiners were making on oil export. The measures were supposed to compensate for the excise duty cut on fuel, which was announced in May 2022.  

[ad_2]

Source link