The Centre collected close to Rs 35,000 crore from windfall taxes on petroleum products in FY23 and will continue with the special provision, as a safeguard against abnormal price movement in FY24.
However, not much revenue is expected from this impost given the sharp fall in global crude prices. The taxes move either way depending on crude prices and the crack spread (refining margin).
Currently, windfall taxes on domestically produced crude and export of petrol, diesel and jet fuel are nil as crude prices and refining margins have moderated to a level where no abnormal profits are observed.
