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India has reduced the windfall tax on petroleum crude from 2,300 rupees ($27.84) per tonne to 1,700 rupees ($20.53) per tonne, as stated in a government announcement on Monday. The revised tax rate will come into effect from January 16, according to the order.
This adjustment follows a previous increase in the windfall tax on January 2, when the government raised it from 1,300 rupees to 2,300 rupees per tonne.
Starting from July 2022, India had introduced a windfall tax on crude oil producers, along with an extension of the levy on the exports of gasoline, diesel, and aviation fuel. This move was initiated as private refiners sought to capitalize on robust refining margins by selling fuel abroad instead of domestically. The windfall tax is subject to fortnightly revisions.