The Centre has reduced the windfall tax on domestically produced crude from Rs 9,600 per tonne to Rs 8,400 per tonne, effective immediately. The windfall tax remains unchanged at nil for diesel and aviation fuel turbines. Earlier on April 16, the government had increased the windfall tax from Rs 6,800 to Rs 9,600 per tonne.
The government regularly evaluates the windfall tax based on the current oil prices and fuel margins in the global market. The windfall tax is a tax levied on industries that unexpectedly earn large profits, and it affects upstream oil companies like Oil and Natural Gas Corp and Oil India. This tax was first imposed in July 2022 when crude oil prices surged due to the Russia-Ukraine conflict.
OMCs cut commercial LPG prices by Rs 30 in April due to declining global crude oil prices and increasing inventories in the US. Commercial and domestic LPG prices are usually revised every month. The price of a 5 kg FTL cylinder was also lowered by Rs 7.50.
