Govt increases windfall tax on crude petroleum to ₹3,200/tonne.
The government announced a hike in the windfall tax on petroleum crude, adjusting it to ₹3,200 per tonne from the previous rate of ₹1,700 per tonne, effective February 3.
However, the windfall tax on diesel and aviation turbine fuel (ATF) also known as jet fuel remains unchanged at zero.
On January 16, the government reduced the windfall tax on petroleum crude to ₹1,700/tonne from ₹2,300/tonne. Further back on January 2, the government lifted the windfall tax on petroleum crude oil to ₹2,300/tonne from ₹1,300/tonne.
Since July 2022, India has implemented a windfall tax on crude oil producers. This move was initiated in response to private refiners’ interest in exporting gasoline, diesel, and aviation fuel to capitalise on favourable refining margins rather than selling domestically. The government revises this tax every two weeks.