India Eliminates Windfall Tax On Petroleum Crude

 The Indian government will cut the windfall tax on petroleum crude to Rs 6,700 per metric ton from Rs 7,100 starting on Saturday, according to a government notification issued on Friday.

The government will also raise the windfall tax on diesel to Rs 6 per litre from Rs 5.50, the notification said.

The windfall tax on aviation turbine fuel will increase to Rs 4 per litre from Rs 2, while the levy on petrol will remain at zero, according to the notification.

In August, the government raised the windfall tax on petroleum crude to Rs 7,100 per ton from Rs 4,250 per ton.

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.