Back Government mulls windfall tax to control fuel prices Gayathri Udyawar / Thursday, May 24, 2018 / Categories: Trending, Markets Post the implementation of dynamic fuel price system, domestic fuel prices are attuned to crude oil prices in the international market, due which the government is no longer able to regulate the fuel prices in a way that suits the Indian economy. To counter the increase of crude oil prices in the international markets, government may devices a new strategy of imposing windfall tax on oil explored by state-run ONGC, according to a leading news agency.The formulation for imposing the windfall tax is based on international crude oil prices. When crude price breaches US$70 per barrel, the tax will imposed said news reports. This is because the oil explored from Indian oil fields will fetch a higher price in the international market.Government will use this additional revenue sources to compensate fuel retailers who might be ask to absorb fuel price increase in the future. Experts believe that government may marginally cut excise duty and request state government's to cut taxes imposed at their end.Reacting to this development, the stock of ONGC was trading in negative territory on Thursday, the stock closed at Rs. 167.65 per share, down by 4.50 per cent. Previous Article GAIL Q4FY18 profit jumps over 4 times Next Article How to select NFO Rate this article: 5.0