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(Bloomberg) – India has reduced windfall taxes on locally produced crude oil and exported diesel and jet fuel, in line with falling international prices.
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The tax on crude oil produced from domestic fields, introduced from July 1, was reduced from Sunday by about 24% to 8,000 rupees ($98.3) a ton, according to a government notification released end of October. The government also removed a 5- rupee per liter levy on the export of aviation fuel and halved the tariff on diesel to 5 rupees per litre.
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New Delhi, which has joined a growing number of countries that have imposed windfall levies to exploit the booming profits of energy companies, has adjusted taxes roughly every 15 days to keep up with international price movements. The latest cuts will help Indian fuel exporters such as Reliance Industries Ltd. billionaire Muksh Ambani and oil explorer Oil & Natural Gas Corp. .
Falling international prices for oil and petroleum-based fuels are helping the world’s third-largest energy consumer, which imports more than 85% of its crude needs.
Indian Oil Corp., the country’s largest fuel retailer, cut aviation fuel prices by about 4.5% to 115,520.27 rupees per kiloliter in Delhi from October 1 to pass on the benefits to consumers. It also reduced the prices of liquefied petroleum gas sold for commercial purposes by 1.4% to Rs 1,859 per 19 kilogram bottle.