off-the-wire

UPDATE 1-India cuts windfall tax on crude oil to zero, diesel halved

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details) NEW DELHI, April 4 (Reuters) - India cut its windfall tax on crude oil to zero from 3,500 rupees ($42.56) a tonne and halved the tax on diesel to 0.5 rupee per litre, a government notification said on Tuesday. India in July imposed a windfall tax on crude oil producers and on exports of gasoline, diesel and aviation fuel, to encourage private refiners to sell fuel products domestically instead of shipping them overseas to take advantage of robust refining margins in global markets.


The government adjusts the tax rates twice a month according to global crude oil price movements. The windfall tax on exports of aviation turbine fuel (ATF) and petrol, which had previously been cut to zero, were left unchanged, the notification said. The government intends to withdraw the windfall tax once global crude oil prices fall firmly below $70 a barrel, a top government official told Reuters last year.


Brent crude oil prices slipped last month near $70 a barrel, a 15-month low, on fears of weakening demand but this week surged above $85 after the OPEC+ group's decision to curtail production.
($1 = 82.2370 Indian rupees) (Reporting by Nikunj Ohri; Writing by Aftab Ahmed; Editing by Jacqueline Wong and Edmund Klamann)

Messaging: twitter: @aftabahmed00))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.