Broader crude oil price trend likely to force review of windfall tax

A windfall tax is a one-off tax levied on companies deemed to have made unreasonably high profits, normally due to unusually favourable market factors

India may decide on reviewing the newly introduced windfall tax on oil producers and refiners based on average global price trends in crude oil and not on brief fluctuations, said two people in the government.

“The petroleum ministry is keeping a close watch on volatility in the global oil market. Any move in this regard (review of the windfall tax) would be taken once there is some clarity and certainty in the price trends,” said one of the persons cited above.

He said the fortnightly review meeting, which was expected on July 15, has not been held yet because an