Thu Sep 12 09:36:00 UTC 2024: ## India Mulls Removal of Windfall Tax as Oil Prices Plunge
**New Delhi:** The Indian government is considering removing the windfall tax on domestic oil production as global crude oil prices continue to fall, according to Petroleum Secretary Pankaj Jain. The move follows a sharp drop in Brent crude futures, which hit their lowest level since December 2021 on Tuesday.
Jain hinted that the price of petrol and diesel could be reduced if crude oil prices remain low for an extended period, suggesting that oil companies may pass on the savings to consumers.
The decline in oil prices has been attributed to a revised downward demand forecast for 2024 and 2025 by the Organization of the Petroleum Exporting Countries (OPEC). OPEC’s monthly report indicates a weakening global demand outlook and expectations of oil oversupply.
The Indian Oil Ministry is currently in talks with the Finance Ministry regarding the removal of the windfall tax, which was initially imposed in July 2022 to capitalize on the high oil prices. The tax has been a subject of debate with critics arguing that it discourages domestic oil production.
The potential removal of the windfall tax and a possible reduction in petrol and diesel prices could offer relief to consumers facing high fuel costs. However, it remains to be seen how quickly the government will act on these proposals and if the current trend of low oil prices will persist.
First Piper 