India eliminated export tax on gasoline and cut taxes on other fuels less than three weeks after the fuels were imposed, providing relief to the nation’s No. 1 fuel exporter Reliance Industries. Ltd. and leading crude oil producer Oil & Natural Gas Corp.
New Delhi fell wind tax according to government announcements for shipments of diesel and aviation fuels is 2 rupees (3 cents) a liter, and completely eliminates the tax of 6 rupees per liter on export gasoline. It also cut taxes on domestically produced crude by around 27% to Rs 17,000 per tonne. Bloomberg News first reported on Thursday that the government was considering tax breaks.
India imposed the tax on July 1, along with an increasing number of countries placing wind taxes to exploit the booming profits of energy companies. But international fuel prices have cooled since then, eroding profit margins for both producers and refiners.
International crude oil prices have fallen since mid-June on fears of a potential global recession, which at one point erased all gains following Russia’s invasion of Ukraine. Profits from gasoline and diesel processing in Asia have fallen in recent weeks, with industry consultant FGE expecting margins to fall further this quarter as supply increases.
According to FGE, Reliance and Rosneft, India’s only privately owned refinery, account for 80% to 85% of India’s total gasoline and diesel exports, according to FGE.
This story has been published from the electronic agency’s feed with no modifications to the text. Only the title has been changed.
Catch them all Business newsletter, Market News, Hot news Events and Latest news Update on Live Mint. Download Mint News app to get Daily Market Updates.
