Impact of Reduced Windfall Tax on Petroleum Crude

The government has reduced the windfall tax on petroleum crude from ₹5,200 to ₹3,250 per metric tonne, effective June 15, as per a notification issued recently. This tax adjustment, which is reviewed every fortnight, remains unchanged at zero for diesel and aviation turbine fuel.

Earlier, on June 1, the government had lowered the windfall tax rate from ₹5,700 to ₹5,200 per metric tonne. Starting from July 2022, India implemented taxes on crude oil production and exports of gasoline, diesel, and aviation fuel to regulate private refiners. This measure aimed to discourage fuel sales abroad instead of domestically to benefit from higher refining margins.

For the official notification, click here.