With effect from September 16, the government increased the windfall tax on the sale of domestically produced crude oil from Rs. 6,700 to Rs. 10,000 per tonne. According to a federal government announcement on Friday, September 15, the special additional excise tax (SAED) on aviation turbine fuel (ATF) has been decreased from Rs. 4 per litre to Rs. 3.50 with effect from September 16.
According to the announcement, the SAED for diesel has been reduced from 6 to 5.50 rupees per liter. The SAED on gasoline exports will remain at zero. The government reduced the SAED on crude oil from Rs. 7,100 per tonne in the last weekly review on September 2 to Rs. 6,700 per tonne.
It should be mentioned that the government enacted the windfall taxes on the sale of domestically produced crude oil for the first time on July 1, 2022, as oil exploration and production businesses generated substantial gains during multiyear high crude oil prices after Russia’s invasion of Ukraine.
Since Saudi Arabia and Russia extended their voluntary oil supply restrictions until the end of the year, global crude prices have been on the rise. The Mint said that supply constraint brought on by Saudi Arabia’s production cutbacks mixed with confidence about Chinese demand to push oil prices up to a new 10-month high for the fifth consecutive session. They were also on course to post a third weekly rise.