Amid a global crude slump (14%) since November, India the world's third largest consumer and importer of oil, has ratified a tax cut of crude imports to Rs 1,700 per tonne from the existing Rs 4,900 per tonne and ₹5 per litre of (ATF) from to Rs 1.5 per litre, as per the notification. The special additional excise duty on petrol remains unchanged at 'Nil', while the windfall tax on high-speed diesel for exports has been reduced to Rs 5 per litre from Rs 8 earlier. This is expected to be highly beneficial for Indian refineries, especially for private ones like Nayara Energy which has already utilised the opportunity to increase their export margins and thus bring in 5x bottom line income (₹5357.1 Cr.) by HY23 compared to the entire FY22.
On September 1, the government increased the windfall tax on domestic crude oil to Rs 13,300 per tonne from earlier Rs 13,000 per tonne. It also revised the cess on the export of ATF to Rs 9 per litre from Rs 2 per litre and increased excise duty on the export of diesel to Rs 12 per litre from Rs 6 per litre.