Wed Sep 18 03:29:05 UTC 2024: ## India Scraps Windfall Tax on Domestically Produced Crude Oil
**New Delhi, September 18:** In a move aimed at potentially easing the burden on consumers, the Indian government has eliminated the windfall tax on domestically produced crude oil, effective from today. The tax, levied as Special Additional Excise Duty (SAED), was previously calculated based on average oil prices over a fortnightly period. The latest notification brings the tax down to zero per tonne.
This move comes after the government last week hinted at possible fuel price reductions if crude oil prices remained low for an extended period. With the windfall tax now removed, oil marketing companies (OMCs) are expected to consider lowering the prices of petrol and diesel.
The windfall tax, introduced in July 2022, was imposed on domestic crude oil and exports of diesel, petrol, and aviation turbine fuel (ATF). The tax was intended to capture the extraordinary profits made by energy companies during a period of high oil prices. However, with global oil prices falling recently, the government has now decided to remove the tax on domestic crude.
The SAED on the export of diesel, petrol, and ATF remains unchanged at ‘nil’.
First Piper 