Budget 2023: Oil industry eyes windfall tax removal

The global oil and gas market has been in the throes of unprecedented volatility due to tighter supply, strong demand, the Russian invasion of Ukraine, and Western sanctions. Global prices rocketed and then dropped as the world economy tanked. Retail fuel prices stayed stable through 2022, as companies stopped adjusting prices. Govt imposed windfall taxes partly appropriate crude producers and fuel exporters' extraordinary gains.

“The budget is a good opportunity to rethink provisions and revise existing policies towards ensuring the country’s energy security. Currently, domestic producers are taxed nearly 70% and a tax structure of 35–40% abiding by global standards will encourage critical investments in the sector,” said Sunil Duggal, Group CEO, Vedanta Ltd.