Govt Scraps Windfall Tax On Petrol, Diesel, Crude, and ATF Exports

Windfall Tax Scrapped: On Monday, the Finance Ministry announced that the windfall tax on aviation turbine fuel (ATF), crude products, diesel and petrol products has been scrapped, according to the papers tabled in Parliament on December 2.

The move will bring relief to the tightening margins of Indian oil majors including Reliance Industries, ONGC , Bharat Petroleum, GAIL, and others.

“Notification No. 29/2024-Central Exciseto be published in Gazette of India dated 2nd December, 2024, together with an explanatory memorandum seeking to rescind Notification No. 03/2022-Central Excise to 07/2022- Central Excise and No. 9/2022-Central Excise all dated 30th June 2022 removing Special Additional Excise Duty (SAED) on production of petroleum crude and on export of Aviation Turbine Fuel (ATF), motor spirit, commonly known as petrol and high-speed diesel oil.” the paper stated.  

The tax, which was imposed in July 2022, taxed domestic crude oil producers for their unexpected gains. 

As reported earlier, the government had, in September 2024, slashed the windfall tax on domestically produced crude oil to zero. In August, the tax was Rs 1851 per tonne.

The stocks of ONGC, the biggest oil producer in the market, were trading 0.35 per cent lower on Monday at Rs 255.80 per share whereas Reliance was trading 0.73 per cent up at Rs 1,301.60 apiece. 

On the contrary, the shares of Oil India Limited were trading 8.45 per cent lower after the news made the headlines. 

As of 01:17 PM, the National Stock Exchange’s Oil & Gas Index was trading flat.