Windfall tax review more likely than expected after sharp fall in global crude prices
A massive crash in refining margins of diesel, petrol and ATF coinciding with a cool-off in crude oil prices from their peaks in June has diminished the super-profits of refiners, a report said on Wednesday. In a surprise move, the government on July 1 slapped export duties on petrol and ATF (Rs 6 per litre or USD 12 per barrel) and diesel (Rs 13 a lire or USD 26 a barrel) and imposed a windfall tax on domestic crude production (Rs 23,250 per tonne or USD 40 per bbl). At that time, the finance ministry stated that the taxes will be reviewed every fortnight.
