The government has announced a reduction in the windfall tax on petroleum crude to Rs 5,200 ($62.33) per metric ton, down from Rs 5,700 per metric ton. This change, detailed in a notification issued on Friday, takes effect on June 1. The biweekly-adjusted windfall tax remains unchanged at zero for both diesel and aviation turbine fuel.
Moreover, oil marketing companies have also reduced the prices of commercial LPG gas cylinders by Rs 69.50, effective immediately from June 1. This adjustment lowers the retail price of a 19 kg commercial LPG cylinder in Delhi to Rs 1,676. Similar reductions have been reported across other metro cities in India, according to news agency ANI.
This latest price cut follows a previous reduction on May 1, 2024, when the price of 19 kg commercial LPG cylinders was decreased by Rs 19. These successive reductions aim to alleviate the financial burden on businesses facing high operating costs amid ongoing economic challenges.
The windfall tax on petroleum crude has seen several reductions in recent months. On May 16, the government lowered the tax from Rs 8,400 to Rs 5,700 per metric ton, following a previous decrease from Rs 9,600 to Rs 8,400 per metric ton on May 1.
India introduced the windfall tax on crude oil production and the export of gasoline, diesel, and aviation fuel in July 2022. The measure was designed to manage private refiners who were prioritizing exports to take advantage of high refining margins rather than supplying the domestic market.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
