Govt scraps windfall tax on petrol, diesel exports; big relief for Reliance, ONGC

The government has abolished the windfall tax on aviation turbine fuel, crude products, petrol, and diesel after extensive deliberations. This decision is a relief for oil giants like Reliance and ONGC. The levy, introduced in July 2022 due to rising global crude prices, had aimed to capture revenue from producers' windfall gains. This move shall benefit the refining margins significantly.

Govt scraps windfall tax on petrol, diesel exports; big relief for Reliance, ONGC
The Government on Monday scrapped the windfall tax on Aviation Turbine Fuel (ATF), crude products, petrol and diesel products, after months of deliberations.

The move, effective immediately, is set to bring relief to oil conglomerates Reliance and ONGC , as their gross refining margins may get a lift.

The windfall tax is a special levy on domestic crude oil production, introduced in July 2022 after rising global crude prices , to capture revenue from windfall gains made by producers.

Reliance Industries ' shares were trading in the green at Rs 1,300.05 apiece on Monday at 1.04 PM. Furthermore, the government has also withdrawn Road and Infrastructure Cess (RIC) on export of petrol and diesel.

Artificial Intelligence(AI) Tabnine AI Masterclass: Optimize Your Coding Efficiency By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate C++ Skills: Master Pointers, Structures and File Stream By - Metla Sudha Sekhar, IT Specialist and Developer View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Advanced C++ Mastery: OOPs and Template Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development C++ Fundamentals for Absolute Beginners By - Metla Sudha Sekhar, IT Specialist and Developer View Program Data Science MySQL for Beginners: Learn Data Science and Analytics Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance AI and Generative AI for Finance By - Hariom Tatsat, Vice President- Quantitative Analytics at Barclays View Program Leadership Business Storytelling Masterclass By - Ameen Haque, Founder of Storywallahs View Program Artificial Intelligence(AI) ChatGPT Mastery from Zero to Hero: The Complete AI Course By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Office Productivity Excel Essentials to Expert: Your Complete Guide By - Study At Home, Quality Education Anytime, Anywhere View Program Office Productivity Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Finance: Finance Beginner Course By - elearnmarkets, Financial Education by StockEdge View Program Marketing Future of Marketing & Branding Masterclass By - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program A notification has also been laid in the Parliament.

In September, the government of India announced the scrapping of windfall tax on crude oil from Rs 1,850 per tonne in August.

The windfall tax on export of diesel and aviation turbine fuel was also eliminated.

During the onset of the Russia-Ukraine war and the West's sanctions on the Kremlin, a surge in crude oil prices resulted in unprecedented profits for oil companies.

These profits created an environment where oil companies made significant, one-time profits.

In response to these extraordinary profits, India had joined several other nations by imposing a windfall tax on domestic crude oil producers and exporters.

This move aimed to generate additional revenue for the government by imposing a windfall tax on domestic crude oil producers and exporters.

This move aimed to generate additional revenue for the government by taxing these super-normal profits.

Nominations for ET MSME Awards are now open.

The last day to apply is November 30, 2024.

Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.

Related Fuel News

More updates you might want to read next.

Tata Motors Plans Rs 40,000 Crore FY31 Investment: Why Its EV And CNG Push Matters For Buyers

Tata Motors Passenger Vehicles is planning to invest Rs 37,500-40,000 crore over the next five years, up to FY31, as it targets a bigger production base, more models and annual sales of over 1.2 million units. ET also reported that the company wants revenue to cross Rs 6 lakh crore by FY31 with a 10 percent EBIT margin, with EVs and CNG models doing much of the heavy lifting. For buyers, the story is less about balance-sheet ambition and more about what kind of cars Tata wants to sell next.

Petrol, Diesel Rates May Ease As Cheaper Crude Arrives: What Hardeep Puri’s Signal Means For India

Union Petroleum Minister Hardeep Singh Puri says petrol and diesel rates in India may ease once recently bought cheaper crude reaches refiners, after global oil prices cooled and Brent slipped below $80 a barrel. The signal matters because India imports most of its crude, so any sustained fall can filter through to motorists, freight users and inflation. But the relief is unlikely to be immediate, because fuel prices depend on inventory cycles, logistics and how quickly oil companies pass on lower input costs.

Petrol, Diesel Rates May Ease As Cheaper Crude Arrives: What Hardeep Puri’s Signal Means For India

Union Petroleum Minister Hardeep Singh Puri says petrol and diesel rates in India may ease once recently bought cheaper crude reaches refiners, after global oil prices cooled and Brent slipped below $80 a barrel. The signal matters because India imports most of its crude, so any sustained fall can filter through to motorists, freight users and inflation. But the relief is unlikely to be immediate, because fuel prices depend on inventory cycles, logistics and how quickly oil companies pass on lower input costs.

Toyota Ebella Deliveries Begin In India: Why The ₹23.6 Lakh E3 Matters For EV Buyers

Toyota has started deliveries of the Urban Cruiser Ebella electric SUV in India, turning the model from launch headline into a real-world ownership story. The top-spec E3 is priced at Rs 23.60 lakh ex-showroom, while Toyota is also offering a Battery-as-a-Service route that lowers the entry price to Rs 15.25 lakh and charges Rs 4.99 per km for battery use. For EV buyers, this is the point where Toyota’s first mass-market electric SUV begins proving itself on the road.