New Delhi: The Indian government has announced a reduction in special additional excise duty (SAED) on crude petroleum, effective from October 18. The new rate for SAED on crude petroleum will be set at Rs 9,050 per tonne. This comes after the previous fortnightly review on September 29, where the windfall tax on domestically produced crude oil was fixed at Rs 12,100 per tonne.
In addition to the SAED reduction on crude petroleum, the duty on diesel exports will also be lowered. The current rate of Rs 5 per litre will be decreased to Rs 4 per litre. Similarly, the duty on aviation turbine fuel (ATF) will be cut from Rs 2.5 per litre to Rs 1 per litre.
It is worth mentioning that the SAED on petrol will remain unchanged at zero.
These changes aim to provide relief to the oil industry amidst rising prices and increasing global uncertainties. India had initially implemented windfall profit taxes on July 1, 2022, in an effort to generate revenue.
By taking these steps, the government hopes to support the oil sector and maintain stability in the market. These adjustments may have an impact on the competitiveness of Indian oil products in the global market.