Crude price drop sets tone for windfall tax review
A massive crash in refining margins of diesel, petrol and ATF coinciding with a cool-off in crude oil prices from their peaks in June has diminished the super-profits of refiners, a report said on Wednesday.
image for illustrative purpose
Skidding Margins
- Sharp price drop may force Govt to rethink on windfall tax
- Windfall tax of Rs23,250/tn or $40/bbl on domestic crude production At that time, the finance - -It's effective from July 1
- Govt also imposed export duties on petrol and ATF (Rs6/litre or $12/bbl) and diesel (Rs13/litre or $26/bbl)
New Delhi: A massive crash in refining margins of diesel, petrol and ATF coinciding with a cool-off in crude oil prices from their peaks in June has diminished the super-profits of refiners, a report said on Wednesday.
In a surprise move, the government on July 1 slapped export duties on petrol and ATF (Rs6 per litre or $12 per barrel) and diesel (Rs13 a lire or $26 a barrel) and imposed a windfall tax on domestic crude production (Rs23,250 per tonne or $40 per bbl). At that time, the finance ministry stated that the taxes will be reviewed every fortnight.
"The last two weeks have seen a massive crash in the refining spreads (or margins) of diesel, gasoline (petrol) and aviation fuel (ATF) coinciding with a cool-off in crude prices from their respective peaks seen in June," brokerage CLSA said.
