(a) As used in this section, unless the context requires otherwise, the term
(1) “crude oil” includes products partially composed of crude oil.
(2) “index price” means the monthly arithmetical average of the price of crude oil prevailing in the first of the two months for which the price of the product taxed in the Virgin Islands is set.
(3) “use” includes the consumption, sale, acquisition and transfer within the Virgin Island, but does not include refineries.
(b) In addition to any other tax prescribed in this chapter, a tax shall be levied, collected and paid for the use in the Virgin Islands of crude oil, unfinished oils or end products derived from oil and any other hydrocarbon mixture, at the rates set in the following table:
| Price of Crude per Barrel | Rate of Tax per Barrel |
| $0.01 to $16.00 | $6.00 |
| $16.01 to $24.00 | $5.00 |
| $24.01 to $28.00 | $4.00 |
| $28.01 and higher | $3.00 |
(c)
(1) The tax imposed under subsection (b) shall be determined on the basis of the amount in barrels at room temperature.
(2) The Director of the Internal Revenue Bureau shall set the index price using as a basis the price quoted in two of the following markets, among others: the New York Mercantile Exchange, West Texas Intermediate, Saudi Light, and North Sea Brent.
(A) The Director shall establish the mechanism to calculate the index price through rules and regulations.
(B) If there are no quotations in one or two of these markets, the Director may fix the price taking any other reliable market as a basis.
(3) The Director shall determine the index price monthly under the procedures established in this subsection and shall advise the taxpayers of the applicable excise tax one week before the first day of each month.
(d) The tax shall be paid pursuant to requirements in section 42a of this title, as applicable.
(e) Exemptions. The tax levied in this section is not applicable to:
(1) Crude oil, end products derived from oil, or any other hydrocarbon mixture used by any entity that has been granted tax exemptions under other law;
(2) Crude oil, end products derived from oil or any other hydrocarbon mixture exported from Virgin Islands;
(3) Crude oil, end products derived from oil or any other hydrocarbon mixture imported or sold locally to the agencies and instrumentalities of the federal government;
(4) Crude oil, finished petroleum or any hydrocarbons mixture used as lubricant or fuel in the propulsion of air and maritime transportation vehicles in their air and maritime travels between the Virgin Islands and other places;
(5) Crude oil, and end products derived from oil, or any other hydrocarbon mixture used as lubricants or fuel in the generation of steam for the cooking, canning and sterilizing of raw material derived from industrial fishing; or
(6) Crude oil, end products derived from oil, or any other hydrocarbons mixture used in the manufacture of articles which after finishing cannot be identified as oil products taxed by this part. Any person covered by this exemption must have the previous acknowledgement and authorization of the Director.