India to Examine Scrapping Windfall Tax on Crude, Official Says

The windfall tax on crude oil has lost its relevance and the finance ministry will examine whether to abolish it, Tarun Kapoor, an advisor to Prime Minister Narendra Modi, said on the sidelines of an industry event.

• The country’s oil ministry too has sought ending the levy on locally-produced oil, he said
• NOTE: India imposed windfall taxes on crude and petroleum products in the middle of 2022 as profits of explorers and refiners soared following a jump in prices after Russia’s invasion of Ukraine
• NOTE: Crude oil prices have since softened and refinery margins have come under pressure

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