• ONGC, Oil India to get relief as Centre cuts windfall tax on crude oil

    The Central government has cut the windfall tax on petroleum crude to Rs 5,700 ($68.34) per metric ton from Rs 8,400 with effect from Thursday, as part of its fortnightly revision that is calibrated with global prices

    This is the second fortnightly cut in windfall tax in a row after a Rs 8,400 per metric ton reduction from Rs 9,600 on May 1.

    Upstream oil exploration and production companies ONGC and Oil India Ltd will gain as they will have to pay a lower tax on their crude oil output.

    The tax has been scaled down as crude oil prices have declined in the international market and the earnings of oil producers have also come down.

    Prices of the benchmark Brent crude are currently hovering at a little over $82 per barrel.

    The government had on April 16 raised the windfall tax on petroleum crude to Rs 9,600 a metric ton from Rs 6,800 due to the sharp increase in oil prices at the time.

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