NEW DELHI: On December 2, 2024, the Indian government made a significant move by scrapping the windfall tax on exports of petrol, diesel, Aviation Turbine Fuel (ATF), and crude oil. This decision follows a series of deliberations and is expected to benefit oil refiners, especially considering the rising global energy prices. The tax, which was introduced to tax the “windfall profits” of oil companies, had been a point of contention.
With the tax now removed, oil companies, including major players like Reliance Industries, ONGC, and Oil India, are expected to experience relief, although the stock market’s reaction has been mixed. While some companies’ stocks dipped, the move is seen as positive for the refining sector, allowing for greater export potential without the burden of the tax.
This change is effective immediately and marks a shift in the government’s approach to managing the financial dynamics of the energy sector. It remains to be seen how this will impact the broader economy, especially in terms of fuel prices and export levels.
