India cuts all windfall tax on crude oil

According to a government notification, the central government has withdrawn all windfall taxes on crude oil with immediate effect.

This comes as global crude oil prices rose after a group of oil-producing countries agreed to cut output in May of this year. Oil producers in the Organization of Petroleum Exporting Countries (OPEC) Plus announced additional output cuts of around 1.16 million barrels per day. Taking into account the huge margins accumulated by domestic crude producers as a result of rising global crude prices, the Centre imposed a crude oil cess of Rs 23,250 per tonne in July 2022. Since then, the government has periodically reduced the windfall tax on crude oil.