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

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Saipem Lands $425M Turkish Gas Contract in Sakarya Expansion

PV Drilling’s Jack-Up Rig Returns to Asia Ahead of April Drilling Ops

Petronas, CNOOC Ink LNG Sale and Purchase Agreement

Russia Gives ExxonMobil More Time to Exit Sakhalin-1 Oil and Gas Project

CNOOC Makes Major Oil Discovery in Bohai Sea

DOF Bags Two Deals in Asia-Pacific Region

Petronas Enlists MISC for FPU Job at Gas Field Offshore Brunei

PTTEP Orders OneSubsea Systems for Two Deepwater Projects off Malaysia

MDL Secures Cable Laying Job in Asia Pacific

Current News

Thailand's Gulf Energy Eyes Long-Term LNG Supply

OceanMight Gets Petronas’ Offshore Construction Job in Malaysia

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

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