India Reduces Windfall Tax on Petroleum Crude Oil
| Aspect | Details |
|---|---|
| Windfall Tax Reduction | Windfall tax on petroleum crude oil reduced to Rs 2,100 per metric tonne, effective August 17, down from Rs 4,600 per tonne. |
| Previous Reduction | On July 31, the windfall tax was reduced by 34.2 percent to Rs 4,600 per tonne. |
| Tax on Diesel and ATF | Windfall tax on the export of diesel and aviation turbine fuel (ATF) has been eliminated. |
| Introduction of Windfall Tax | Introduced in July 2022 to address private refiners' preference for international fuel sales. |
| Tax Revision Frequency | Revised bi-weekly based on fluctuations in international crude and product prices. |
| Global Crude Oil Prices | Oil prices declined by approximately 2 percent on Friday. |
| Brent Crude | Fell by $1.06 (1.3 percent) to $79.98 per barrel. |
| US WTI Crude | Decreased by $1.22 (1.6 percent) to $76.94 per barrel. |
| Previous Week's Closing | Brent: $79.66, WTI: $76.84. |
| Factors Affecting Oil Prices | China's Economic Slowdown: New home prices dropped at the fastest rate in nine years, industrial output decreased, and unemployment rose, reducing demand. Refineries in China lowered crude processing rates due to weak fuel demand. |
| US Economic Data: Positive data, including stronger-than-expected retail sales and lower new jobless claims, supported oil prices. |