As per the notification, the SAED on diesel has ben cut from 6/liter to Rs. 5.50/litre. The SAED on export of petrol will continue to be zero.
New Delhi: The government has hiked windfall tax on the sale of locally-produced crude oil from Rs. 6,700 to Rs. 10,000 per tonne, with effect from September 16. The special additional excise duty (SAED) on aviation turbine fuel (ATF) has been reduced to Rs. 3.50/litre from Rs. 4, with effect from September 16, according to notification by the central government on Friday, September 15.
As per the notification, the SAED on diesel has ben cut from 6/liter to Rs. 5.50/litre. The SAED on export of petrol will continue to be zero. In the previous fortnightly review on September 2, the government had cut the SAED on crude petroleum to Rs. 6,700 per tonne from Rs. 7,100 per tonne.
The government hiked special additional excise duty (SAED) on crude petroleum to Rs 10,000 per tonne from today. The windfall tax on domestically produced crude oil was set at Rs 6,700/tonne. The duty on jet fuel or ATF will be reduced to Rs 3.5/litre from Rs 4/litre currently.… pic.twitter.com/OnzTAlQLK8
— ANI (@ANI) September 16, 2023
It is to be noted that the government first imposed the windfall taxes on the sale of locally produced crude oil with effect from July 1, 2022 as oil exploration and producing companies made heavy profits amid multi-year high crude oil prices post Russia’s invasion of Ukraine.
International crude prices have been on a rising spree ever since oil producers Saudi Arabia and Russia extended their voluntary oil output cuts till the end of the year. According to a report in the Mint, oil prices rose to a fresh 10-month high for the fifth straight session and were on track to record a third weekly gain as supply tightness driven by Saudi Arabian production cuts combined with optimism around Chinese demand.