Is it true that the government plans to withdraw the windfall tax on oil?

Government has not confirmed but it is likely to either withdraw export taxes on diesel and petrol as well as the windfall tax on crude oil if low oil prices persist. The sharp fall in gross refining margins of diesel, petrol and ATF has taken away the super normal profits made by the oil companies. The fall in crude largely offsets the impact of the windfall gains.

It may be recollected that on July 01st, government had slapped export duties of Rs6 per litre on petrol and Rs13 per litre on diesel. In addition, the government had imposed windfall tax on domestic crude production at Rs23,250 per tonne. These may not make much sense in a falling oil price scenario?