FinMin reviews the levy every 14 days, taking into account global crude oil prices. Brent and US crude prices have seen a sharp correction over the past month, with international benchmark Brent falling below $90 a barrel, its lowest level since early February this year, on fears the global economic slowdown will weigh on demand prospects becomes . In the Asian trading hours on Monday, Brent oil for November delivery was trading at $92.3 a barrel, up 0.8%, while US West Texas Intermediate (WTI) crude oil futures were in October up 0.96% to $85.58 a barrel.
The Treasury increased the windfall tax on domestically produced crude from £13,000 to £13,300 per tonne in its latest communication on August 31. The diesel export tax has been increased to £13.5 per liter from the previous £9 and the ATF export tax, previously £2 per liter, has been raised to £9 per litre.
The center first introduced a levy of ₹23,250 per tonne as a Special Additional Excise Duty (SAED) on domestically produced crude oil on July 1, 2022. The import of crude oil was not subject to this tax. The center decided to levy an unexpected tax on oil exports to capitalize on the huge profits oil producers and refiners were making from oil exports. The measures were intended to compensate for the fuel consumption tax cut announced in May 2022.
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