India raises windfall tax on petroleum crude to ₹3,200 per tonne

While the windfall tax on petroleum crude has been raised, the tax on diesel and aviation fuel has been kept zero.

India raised its windfall tax on petroleum crude to 3,200 rupees/ton from 1,700 rupees from Saturday while keeping the windfall tax on diesel and aviation turbine fuel at zero, the government said late on Friday.

The government has raised the windfall tax on petroleum crude (REUTERS File Photo)

On Jan. 16, the government cut windfall tax on petroleum crude from 2,300 rupees a ton.

From July 2022, India imposed a windfall tax on crude oil producers, and extended the levy on exports of gasoline, diesel and aviation fuel as private refiners wanted to sell fuel overseas to make gains from robust refining margins instead of selling locally. It revises the tax every two weeks.