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- Following the government’s adjustment of the excess profits tax applied to locally sourced crude oil, the market response among oil and gas shares was inconsistent.
- The state increased the special additional excise duty (SAED) on crude oil to ₹12,100 per metric ton.
- A windfall tax is a levy placed on certain goods, like crude oil, in response to sudden and significant price increases.
- By hiking this tax, the government has effectively made the exportation of oil more costly, thereby deterring it.
- This policy change is expected to affect companies involved in the extraction and production of oil, including Oil and Natural Gas Corporation Ltd (ONGC) and Oil India, among others.