Windfall tax reduced on domestically-produced crude oil; levy increased on diesel, jet fuel

The government has reduced the windfall tax applicable to the export of domestically-produced crude oil by Rs 400, or 5.6 per cent, to Rs 6,700 per tonne, with effect from Saturday, September 2.

It raised the windfall tax on the export of diesel by Re 0.5 to Rs 6 per litre, and doubled it on aviation turbine fuel (ATF) to Rs 4 per litre, according to an official notification on Friday. 

However, it left the levy on petrol unchanged, at zero. 

The Centre had, in August, raised the windfall tax on petroleum crude to Rs 7,100 per tonne from Rs 4,250 per tonne.

The Centre imposed the windfall tax on crude oil producers in July 2022, and extended the levy on exports of petrol, diesel and jet fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling in the domestic market.

(With inputs from agencies)