New Delhi: The Union government has hiked the windfall tax on crude petroleum to Rs 7,100 per tonne. The new rate will come into effect from today. In the previous fortnightly review, the windfall tax on domestically produced crude oil was set at Rs 4,250 per tonne.
The government also increased special additional excise duty(SAED) or duty on export of diesel. The SAED is hiked to Rs 5.50 per litre from Re 1 per litre. . A duty of Rs 2 per litre will be imposed on jet fuel or ATF with effect from August 15. Currently, there is no SAED on the jet fuel. SAED on petrol will continue to be zero.
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India is the world’s largest consumer and importer of crude oil. The Union government in July last year imposed the windfall tax on crude oil producers and levies on exports of petrol, diesel and aviation fuel. Windfall tax is levied as a special additional excise duty which is aimed at absorbing the super-profits earned by domestic crude oil producers due to high global crude, product prices. The Union government reviews the windfall tax and associated rates in a fortnightly manner.
Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel, and aviation turbine fuel (ATF).
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