India Scraps 1,850 Rupees/Tonne Windfall Tax on Petroleum Crude

The Indian government has announced the removal of the windfall tax on petroleum crude, reducing it from 1,850 rupees per tonne ($3/bl) to zero, effective September 18, 2024. This decision is attributed to the cooling of global oil prices. The windfall tax was originally imposed to capture excess profits from oil producers when prices surged. The removal of the tax is expected to benefit domestic oil companies such as Oil India, ONGC, IOC, BPCL, and HPCL, which saw their shares rise following the announcement.