India imposes 3-rupee windfall tax on petrol exports from May 16
The Indian government has imposed a 3-rupee-per-litre windfall tax on petrol exports from May 16. The move aims to protect domestic supply and capture rising margins as global oil prices surge.
India's finance ministry has imposed a 3-rupee-per-litre windfall tax on petrol exports from Saturday, May 16, as global oil prices surge in the wake of the Iran war. The measure aims to shield domestic consumers and channel part of refiners' jumping margins to the state.
Reliance Industries and Nayara Energy operate most of India's export-focused refining capacity, and the levy will compress their near-term margins. Indian petrol exports generate an annual foreign-exchange inflow of roughly 18 billion dollars.
The government said it will review the tax rate every two weeks and adjust it in line with Brent crude. India's current account deficit, swelled by a heavier oil import bill, is now projected by ICICI Securities to reach 1.5 to 2 percent of GDP this fiscal year.
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