Windfall tax was implemented post the outbreak of conflict between Russia and Ukraine when oil prices spiked and remained above $100 per barrel for several weeks.
The government on Monday scrapped the windfall tax on domestic production of crude oil and exports of petrol, diesel and aviation turbine fuel, effective immediately. The move marks the end of a levy introduced in July 2022 and comes as a big relief to oil producers and refiners.
The petroleum ministry had sought removal of the tax, noting that there is no relevance of the tax anymore as crude prices have stabilised from their earlier highs.
Shares of major oil producers Reliance Industries and state-owned Oil and Natural Gas recovered about 2% from their day’s low. Shares of RIL rose by 1.28% to Rs 1,311.05 against the previous close of Rs 1,292.45, while that of ONGC were up by 0.52% to Rs 258.10 from the previous close of Rs 256.75 on the BSE. Read more
Source: Financial Express