ONGC, OIL to gain as govt cuts windfall tax on crude oil

New Delhi: The Union government has reduced the windfall tax on petroleum crude to Rs 1,700 per tonne from Rs 2,300 a tonne in its fortnightly revision as oil prices have come down in the international market.

The reduction which comes into effect from Tuesday while benefit upstream oil companies ONGC and Oil India Ltd as their tax outgo on sales of crude will come down.

The government had first imposed the windfall tax on crude oil in July last year amid soaring crude oil prices.

It also extended the tax to exports of gasoline, diesel and aviation fuel after private refiners started making gains from robust refining margins in overseas markets, instead of selling in the domestic market.