BPCL - Govt Slashes Windfall tax on Domestic Crude

BPCL - Govt Slashes Windfall tax on Domestic Crude

BPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It has refineries at Mumbai and Kochi, LPG bottling plants and Lube blending plants at various locations. The Corporation’s marketing infrastructure includes vast network of Installations, Depots, Retail Outlets, Aviation Fuelling Stations and LPG distributors.

BPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It has refineries at Mumbai and Kochi, LPG bottling plants and Lube blending plants at various locations. 

The Corporation’s marketing infrastructure includes vast network of Installations, Depots, Retail Outlets, Aviation Fuelling Stations and LPG distributors.

Govt of India hold 53% stake in BPCL. LIC owns 9.5% stake and ICICI Pru Amc holds nearly 2.5% stake in the company.

LTP 361.

Market Cap 78300 Crores.

The government last month reintroduced the windfall tax of ₹6,400 per tonne on domestically produced crude oil to rationalise the tax structure in the petroleum sector.

The government has recently slashed the windfall tax or special additional excise duty (SAED) on domestically produced crude from ₹6,400 per tonne to ₹4,100 per tonne, with effect from May 2, 2023.

The government initially imposed the windfall tax on the exports of crude oil, diesel and aviation fuel in July 2022 after private refiners preferred overseas markets to gain from high refining margins, instead of selling at lower-than-market rates in the country. The tax rates are revised every fortnight based on prevailing international rates. 

 

In January, rating agency Moody's said the country’s windfall tax on the exports of locally-produced oil has helped reduce the state-owned refining and marketing companies' marketing losses

 

https://www.fortuneindia.com/macro/govt-slashes-windfall-tax-on-domestic-crude-to-4100-heres-how-oil-stocks-reacted/112504

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