Representative file image. , Photo credit: PV Shivakumar
India has reduced the windfall tax on petroleum crude from ₹6,400 per tonne to ₹4,100 ($50.14) per tonne with effect from Tuesday, according to a government notification.
The government left the windfall tax on petrol, diesel and aviation turbine fuel at zero.
The government revises tax rates every fortnight based on fluctuations in oil prices.
On 4 April, India reduced the windfall tax on petroleum crude to nil from Rs 3,500 per tonne earlier. The levy on crude was increased to Rs 6,400 per tonne on April 19.
India last July imposed a windfall tax on crude producers and raised levies on exports of gasoline, diesel and aviation fuel after private refiners wanted to profit from stronger refining margins in overseas markets than from domestic sales.