India Imposes A Windfall Tax On Oil Producers and Export Duties For Oil Products

Nidhi Verma
Friday, July 1, 2022

India introduced export duties for gasoil, gasoline and jet fuel on Friday to help boost domestic supplies, while also imposing a windfall tax on oil producers that have benefitted from higher global crude oil prices.

The new taxes, announced in government orders, will dent the earnings of refiners like Reliance Industries Ltd and Nayara Energy, part owned by Russian oil major Rosneft, and oil producers Oil and Natural Gas Corp, Oil India Ltd and Vedanta Ltd.

Shares of Reliance fell as much as 8.7% to 2,370.10 rupees, their biggest intra-day percentage drop since November 2020, while Mangalore Refinery and Petrochemicals slumped 10% to 81.55 rupees.

Vedantashares dropped as much as 7.6% to hit their lowest since March 2021 and Oil and Natural Gas Corp shares fell 10.5%, their worst intra-day percentage fall since April 2020.

The windfall tax, in the form of a special additional excise duty (SAED), on oil producers was set at 23,250 rupees per tonne of crude oil, the orders said.

The new export duties were set at 6 rupees per litre for both gasoline and jet fuel, and at 13 rupees per litre for gasoil.

The government also set new rules requiring oil companies exporting gasoline to sell to the domestic market the equivalent of 50% of the amount sold to overseas customers for the fiscal year ending in March 31, 2023

For diesel, they are required to sell domestic buyers the equivalent of at least 30% of the amount that they export.

(Reporting by Nidhi Verma; Editing by Christian Schmollinger & Simon Cameron-Moore)


Categories: Energy Industry News Activity Production Asia Regulations

Related Stories

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Marine Masters Secures Wellhead Platforms Installation Job Off India

CNOOC Brings Online Second Phase of Luda Oil Field Project in Bohai Sea

ADNOC Secures LNG Supply Deal with India's BPCL

CNOOC’s South China Sea Oil Field Goes On Stream

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Sembcorp Signs 10-Year LNG Supply Contract with Chevron

Yinson and PetroVietnam JV Get FSO Contract for Vietnamese Field

Valeura Boosts Production at Jasmine Field with Five New Wells Now Onstream

Current News

Woodside Inks Long-Term LNG Supply Deal with China Resources

CNOOC Starts Production at Two New Oil and Gas Projects

Argentina YPF to Shed Offshore Exploration Projects

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Shell Hires Noble’s Drillship for Work in Southeast Asia

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

CNOOC Discovers ‘Vast Exploration Prospects’ in China’s Beibu Gulf Basin

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com