New Delhi : The government on Friday slashed the unexpected tax on the sale of domestic crude oil by 21% to 10,500 per tonne, in line with the slack in global oil prices over the past fortnight, an official order showed.
For more than two weeks, the sale of crude oil produced in India levied an additional duty of Rs. 13,300 per tonne.
Center reduces special additional excise duty on export of aviation turbine fuel 9 to a liter 5 liters. The cess remains unchanged.
The government has also reduced the special additional excise duty on the export of diesel. 12 per liter to 8.5 liters. Changes are effective from Saturday.
Crude oil prices have tumbled in the past two weeks amid demand concerns from China as the country faces a surge in Covid-19 cases and fresh lockdowns. China is one of the world’s largest oil importers.
Currently, the November contract for Brent futures is trading at $91.62 a barrel on the Intercontinental Exchange. It’s down nearly 13% from $105 a barrel on Aug. 31 at the time the last revision was announced.
Besides, anticipation of a steep hike in rakes by the US Federal Reserve has also supported the prices. Analysts at Nomura recently speculated that the Federal Open Market Committee, the Federal Reserve’s policy-setting committee, could raise its short-term interest rate target by a full percentage point at its policy meeting next week, because of upside inflation risks. due to the origin of .
The Federal Open Market Committee will announce its policy decision on September 20-21. The rate hike by the US Fed is likely to have other major central banks, including the European Central Bank, slowing down the growth rate, which will ultimately affect the demand for crude.
However, energy risks emerging from the Russia-Ukraine conflict will keep the market volatile.
Center imposed export duty on July 1 6 per liter on petrol and ATF and a 13 liter duty on export of diesel. an unexpected tax 23,250 per tonne was imposed on the sale of domestic crude.
The taxes were first reviewed on July 20. Revenue Secretary Tarun Bajaj had said after the tax was imposed on July 1, that it would be reviewed every 15 days, taking into account other factors, including foreign exchange rates and global crude oil prices.
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