Centre raises windfall tax on petroleum crude

The new rates would come into effect from July 2.

Representative image of crude oil.

Credit: Reuters Photo

The Indian government has raised the windfall tax on petroleum crude to 6,000 rupees ($72) per metric ton from 3,250 rupees, effective from July 2, a notification issued on Monday showed.

The windfall tax, which is revised every two weeks, remained unchanged at zero for diesel and aviation turbine fuel.

India had on June 15 cut the windfall tax on petroleum crude to 3,250 rupees per ton from 5,200 rupees two weeks before.

From July 2022, India started taxing crude oil production and exports of gasoline, diesel and aviation fuel to regulate private refiners that wanted to sell fuel overseas instead of locally to gain from robust refining margins.