$12-bn 'windfall' tax will take a toll on oil producers
Upstream producers will have to pay tax of Rs23,250 per tonne ($38.2/bbl) of crude oil produced in India
Centre receives Rs 5,001 crore as dividend from ONGC
Earnings Pressure
- Upstream producers will have to pay tax of Rs23,250 per tonne ($38.2/bbl) of crude oil produced in India
- Indian oil cos will have to pay Rs6 per litre on petrol&ATF exports and Rs13 per litre on diesel exports
- In May 2022, govt slashed excise duty by Rs8 per litre on petrol and Rs6 on diesel
New Delhi: The windfall taxes on domestic crude oil production and fuel exports will generate close to $12 billion (Rs94,800 crore) for the government in the remainder of the current fiscal, while trimming profits of firms such as Reliance Industries Ltd (RIL) and ONGC, Moody's Investors Service said Tuesday.
On July 1, the government imposed windfall gain taxes on the export of petrol, diesel and aviation turbine fuel (ATF), and on the domestic production of crude oil. It has also mandated exporters to meet the requirements of the domestic market first.
