Govt revises windfall tax on petroleum crude by 41%, oil stocks on turbulence

New Delhi: According to the latest notification issued by the Finance Ministry, the Centre has surged the windfall tax levied on petroleum crude to Rs 9,600 per metric tonne, up 41% as compared to Rs 6,800 currently levied upon. The new rates will come into effect from Tuesday, April 16.

The consequence of the announcement has been reiterated by the stocks of some of the major crude refiners, with an opening in the red. The major devastating stocks were Reliance Industries Ltd (RIL), 0.32% lower at Rs 2,920.40 apiece, and Oil India, down by 0.14% at Rs 621.

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While the windfall tax on petroleum crude has been raised, no changes have been made for diesel and aviation turbine fuel (ATF). Both will continue to draw a nil windfall tax.

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The tax levy on petroleum crude has been consistently raised in the past few of review meetings. It can calculated that on March 1, the rate stood at Rs 4,600 per metric tonne, which was increased to Rs 4,900 in mid-March, and subsequently hiked to Rs 6,800 on April 4.

This hike in windfall tax on petroleum crude is allegedly aligned with the global oil market suppression to face volatility. The benchmark Brent crude is presently trading around the $90 per mark, in the backdrop of the escalating tensions in the Middle East.

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