Government cuts windfall tax on crude petroleum to ₹1,700/tonne effective tomorrow

India cut its windfall tax on petroleum crude to ₹1,700 ($20.53) a tonne from ₹2,300 a tonne, according to a government notification on Monday.

The cut will be effective from January 16, the order said.

On January 2, the government had lifted the windfall tax on petroleum crude oil to ₹2,300 a tonne from ₹1,300 a tonne.

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 fortnightly.