Oil Market News: India’s Ministry of Finance marginally raises windfall tax

crude oil

February 16, 2023

New Delhi, India

India Adjusts Oil Taxes

In response to the fluctuating global oil market, India’s Ministry of Finance has announced adjustments to oil taxes. Here’s a breakdown of the key changes:

Marginally Raised Windfall Tax

The windfall tax on the sale of domestic crude oil has been marginally increased to ₹3,300 per tonne. This move aims to capture higher profits made by oil exploration and producing companies, aligning with India’s efforts to regulate its domestic oil market.

Reintroduction of Special Additional Excise Duty (SAED)

A ₹1.5 per litre SAED on the export of diesel has been reintroduced. This measure is intended to regulate the export of petroleum products, particularly diesel, and balance domestic demand with international market dynamics.

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Navigating Global Market Volatility

The decision to adjust taxes comes amidst ongoing volatility in the global oil market, influenced by geopolitical tensions and supply-demand dynamics. India’s adaptive approach reflects its sensitivity to international market trends and the need for flexible policy responses.

Also Read: FPI Investments Surge: Boosting Confidence in India’s Economic Growth

Forecasts and Policy Background

Insights into contrasting views between OPEC and the International Energy Agency (IEA) regarding global oil demand growth are provided. This background contextualizes India’s current policy measures within broader historical and geopolitical events.


India’s Ministry of Finance’s adjustments to oil taxes demonstrate a proactive approach to managing the domestic oil market amidst global uncertainties. With ongoing fluctuations in the global oil market, India remains vigilant in its efforts to ensure stability and balance in the oil sector.

This move reflects India’s commitment to navigating the complexities of the global oil market while prioritizing its domestic interests and economic stability.

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