The government has cut windfall tax on domestically produced crude oil to ₹8,400 per tonne from ₹9,600 per tonne with effect from Wednesday.

The tax is levied in the form of Special Additional Excise Duty (SAED).

The SAED on the export of diesel, petrol and jet fuel or ATF, has been retained at nil. The new rates are effective from May 1, an official notification said.

India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

Image used for representational purpose.
| Photo Credit: Special Arrangement

The government has hiked windfall tax on domestically produced crude oil to ₹4,600 per tonne from ₹3,300 per tonne with effect from March 1.

The tax is levied in the form of Special Additional Excise Duty (SAED).

The SAED on export of diesel, however, has been cut to nil from ₹1.50 a litre, according to an official notification.

On petrol and jet fuel or ATF, the levy has been retained at nil.

The new rates are effective from March 1.

India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

The Government has hiked its windfall tax on petroleum crude. File
| Photo Credit: Reuters

The Government hiked its windfall tax on petroleum crude to ₹4,600 rupees a metric ton from ₹3,300 with effect from March 1, according to a Government Order released on February 29.

Also read: Explained | What is windfall tax and why are countries imposing it on the energy sector right now?

India also cut the windfall tax on diesel to zero from 1.50 per litre effective March 1, the order showed. The tax on petrol and aviation turbine fuel will continue to be nil.

On Feb. 15, the Centre raised the windfall tax on petroleum crude to ₹3,300 a metric ton from ₹3,200 and hiked the tax on diesel to ₹1.5 a litre from zero. This was effective from Feb. 16.

India imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The government revises the tax fortnightly.

New Delhi:

The government has increased the windfall tax on petroleum crude to 10,000 rupees ($120.36) per ton from 6,700 rupees, effective September 16, according to a government notification on Friday.

The government also cut the windfall tax on aviation turbine fuel to 3.50 rupees per litre from 4 rupees.

The levy on diesel has been cut to 5.50 rupees per litre from 6 rupees, the notification said.

On September 1, the government cut the windfall tax on petroleum crude to 6,700 rupees per ton from 7,100 rupees.

India imposed the windfall tax on crude oil producers in July last year and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.