<p>The Centre, effective from Tuesday, increased windfall profit tax on domestically produced crude oil by 23.52 per cent to Rs 2,100 per tonne from the earlier rate of Rs 1,700 per tonne amid the spike in energy prices in the international markets.</p>.<p>As per a notification issued by the Department of Revenue, Ministry of Finance, dated 2nd January, the windfall profit tax on aviation turbine fuel (ATF) is increased to Rs 4.5 per litre from the earlier rate of Rs 1.5 per litre. The special additional excise duty on high-speed diesel for exports has been increased to Rs 7.5 per litre from Rs 5 per litre. </p>.<p>“This notification shall come into force on the 3rd day of January 2023,” noted the notification issued by Amreeta Titus, Deputy Secretary to the Government of India.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/opinion/in-perspective/delink-pricing-of-natural-gas-crude-1174532.html" target="_blank">Delink pricing of natural gas, crude</a></strong></p>.<p>The increase in windfall profit tax on domestic crude oil, diesel and ATF has come following a sharp increase in energy prices in the international markets.</p>.<p>The government introduced a special additional excise duty levy in July 2022. The additional levy was introduced in view of the windfall gains made by domestic crude producers and refiners due to the high prices of petroleum products in the global markets.</p>.<p>The special additional levy is reviewed fortnightly tracking the changes in crude oil prices in the international markets.</p>.<p>There have been wide fluctuations in crude oil prices in the international markets in the past year. The windfall tax has been revised in line with the fluctuations in the energy markets.</p>.<p>Commenting on the latest revision on special additional excise duty, Morgan Stanley noted that the revision in the levies was on the expected lines.</p>.<p>In the previous fortnight, the government had sharply cut the windfall tax. On December 16, the windfall tax on domestically produced crude oil was reduced to Rs 1,700 per tonne from Rs 4,900 per tonne. The tax on ATF was reduced to Rs 1.5 per litre from Rs 5 per litre. These taxes have been revised upward again but remain below the level of December 15.</p>.<p>Mukesh Ambani-run Reliance Industries Limited (RIL) and Rosneft-backed Nayara Energy are the major exporters of diesel and aviation turbine fuel from India while the major domestic crude oil producers are Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.</p>.<p>Commenting on the impact of the latest change in windfall tax on Reliance Industries’ refining margin, Morgan Stanley noted in a report, “RIL's gross refining margin under the new tax regime is now USD 15.1 per barrel (as 30 per cent of refinery output is subject to this tax), and increased with lower crude loss, crude discount, petcoke gasifier benefit and decline in export taxes.”</p>.<p>The share price of RIL slipped 0.70 per cent to Rs 2557 on the BSE on Tuesday. The scrip dipped to a low of Rs 2548.05 in the intra-day. </p>
<p>The Centre, effective from Tuesday, increased windfall profit tax on domestically produced crude oil by 23.52 per cent to Rs 2,100 per tonne from the earlier rate of Rs 1,700 per tonne amid the spike in energy prices in the international markets.</p>.<p>As per a notification issued by the Department of Revenue, Ministry of Finance, dated 2nd January, the windfall profit tax on aviation turbine fuel (ATF) is increased to Rs 4.5 per litre from the earlier rate of Rs 1.5 per litre. The special additional excise duty on high-speed diesel for exports has been increased to Rs 7.5 per litre from Rs 5 per litre. </p>.<p>“This notification shall come into force on the 3rd day of January 2023,” noted the notification issued by Amreeta Titus, Deputy Secretary to the Government of India.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/opinion/in-perspective/delink-pricing-of-natural-gas-crude-1174532.html" target="_blank">Delink pricing of natural gas, crude</a></strong></p>.<p>The increase in windfall profit tax on domestic crude oil, diesel and ATF has come following a sharp increase in energy prices in the international markets.</p>.<p>The government introduced a special additional excise duty levy in July 2022. The additional levy was introduced in view of the windfall gains made by domestic crude producers and refiners due to the high prices of petroleum products in the global markets.</p>.<p>The special additional levy is reviewed fortnightly tracking the changes in crude oil prices in the international markets.</p>.<p>There have been wide fluctuations in crude oil prices in the international markets in the past year. The windfall tax has been revised in line with the fluctuations in the energy markets.</p>.<p>Commenting on the latest revision on special additional excise duty, Morgan Stanley noted that the revision in the levies was on the expected lines.</p>.<p>In the previous fortnight, the government had sharply cut the windfall tax. On December 16, the windfall tax on domestically produced crude oil was reduced to Rs 1,700 per tonne from Rs 4,900 per tonne. The tax on ATF was reduced to Rs 1.5 per litre from Rs 5 per litre. These taxes have been revised upward again but remain below the level of December 15.</p>.<p>Mukesh Ambani-run Reliance Industries Limited (RIL) and Rosneft-backed Nayara Energy are the major exporters of diesel and aviation turbine fuel from India while the major domestic crude oil producers are Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.</p>.<p>Commenting on the impact of the latest change in windfall tax on Reliance Industries’ refining margin, Morgan Stanley noted in a report, “RIL's gross refining margin under the new tax regime is now USD 15.1 per barrel (as 30 per cent of refinery output is subject to this tax), and increased with lower crude loss, crude discount, petcoke gasifier benefit and decline in export taxes.”</p>.<p>The share price of RIL slipped 0.70 per cent to Rs 2557 on the BSE on Tuesday. The scrip dipped to a low of Rs 2548.05 in the intra-day. </p>