Published on 24/09/2022 5:44:28 PM | Source: Reuters

Oil India sees 'healthy' profit in September qtr despite windfall tax

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Oil India Ltd is expecting a "healthy profit" for the quarter ending Sept. 30 despite a levy of windfall tax on crude sales, Harish Madhav, head of finance at India's state-run oil producer, said on Saturday.

India imposed a windfall tax on oil producers in July amid claims the industry was making abnormal profits due to a spike in global crude prices. The tax has been reduced from 23,250 Indian rupees ($286) per tonne to 10,500 rupees per tonne to reflect a fall in global oil prices.

The windfall tax has averaged around $25-$26 per barrel during the quarter, leading to Oil India realising $80 a barrel, Madhav told a news conference.

"This is much better than what we had realised earlier. So we should be able to make a healthy profit," he said.

($1 = 81.2500 Indian rupees)