• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 46 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 2 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

India Slaps Windfall Tax On Oil Producers And Refiners

India has initiated a windfall tax on the country's oil producers and oil refiners who are exporting more due to the high international price of crude oil and refined products, Reuters said on Friday.

India's windfall tax will be 23,250 rupees per ton on oil producers and 6 rupees per liter on gasoline and jet fuel. The windfall tax on gasoil exports will be 13 rupees per liter.

What's more, fuel exporters will be required to sell at least some of their product domestically. The new taxes will serve as an incentive to keep more product at home and export less—a reality that will further tighten international markets for oil and oil products.

 "As exports are becoming highly remunerative, it has been seen that certain refiners are drying out their pumps in the domestic market," a government-issued statement read.

Shares in India's Reliance Industries fell on the news as the market assesses the damage a windfall tax could inflict on the company's bottom line.

India has been purchasing growing amounts of cheap Russian crude oil, somewhat insulating the heavy oil importer from what would have otherwise been crippling prices. India's Russian crude oil purchases have shot up 50% since April and are five times higher than the volume that India imported from Russia during the entire year last year. Russian crude now makes up 10% of the country's total crude oil imports. About 40% of the crude oil that the country imports makes its way to private refiners.

India's state-run refiners are struggling to compete with India's private refining sector, delivering most of its finished products to the local market at government-capped prices. Shares in state-run oil companies rose on the news.

By Julianne Geiger for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News