Last July, govt imposed the windfall tax on these items after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling it cheap at home.
The federal government also raised export tax on diesel to 7.5 rupees per litre from 5 rupees, while raising the windfall tax on ATF to 4.5 rupees per litre from 1.5 rupees.
The cap will allow non-EU countries to continue importing Russian oil, but will prohibit companies from handling cargoes of it around the globe, unless it is sold for less than $60.
European Union ban on Russian crude imports from 5 Dec will drive European refiners to buy more Middle East oil, putting them in competition with Asian buyers.
The external affairs minister also said US knows India's position on Russian oil imports and has 'moved on', adding that the country has been 'open and honest about its interests.'
India’s ongoing trade with Russia, especially imports of crude oil, has been a sore spot with US for months. US Consulate General wrote to Mumbai Port Authority a fortnight ago.
As the EU slapped 6th round of sanctions on Russia, almost 860,000 barrels a day of crude were loaded onto tankers at Russian terminals last week, before heading to destinations in Asia.
Windfall gains of Rs 84,400 crore-86,000 crore from higher crude prices could help the government bridge a shortfall that may occur in meeting its fiscal deficit target for 2022-23.
India’s industrial output growth saw a 10-month low in June, with Index of Industrial Production (IIP) growing by mere 1.5% as against 1.9% in May 2025.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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