Government Increases Windfall Tax on Crude Oil by 46% to ₹6,000/Tonne

The government has increased the windfall tax on domestically produced crude oil to ₹6,000 per tonne, up by 46% from the previous ₹3,250 per tonne, effective from Tuesday, according to an official notification.

The tax, implemented as Special Additional Excise Duty (SAED), remains nil for the export of diesel, petrol, and aviation turbine fuel (ATF).

Initially introduced on July 1, 2022, India’s windfall profit tax aims to capture supernormal profits from energy companies, aligning with global practices.

The revised rates are reviewed every two weeks based on the average oil prices of the preceding fortnight.

In related updates, the price of ATF was recently raised by 1.2% to ₹96,148.38 per kilolitre in Delhi, following a significant reduction of 6.5% in early June. Prices for commercial LPG used by hotels and restaurants were reduced by ₹30 per 19-kg cylinder, in line with international oil price trends.

Despite these adjustments, prices for domestic cooking gas remained unchanged at ₹803 per 14.2-kg cylinder.

Petrol and diesel prices continue to be stable after a reduction of ₹2 per litre in mid-March.