The government has reduced the windfall tax on crude petroleum by Rs 1,300 per tonne to Rs 5,000. According to media sources, the charge on jet fuel (ATF) has also been decreased to Rs 1.06 lakh per kilo liter (kL) from Rs 1.11 lakh/kL.

On November 16, the Centre cut the windfall tax on fuel and crude oil. The windfall tax on crude oil was reduced from Rs 9,800 per tonne to Rs 6,300 ($75.70), while the tax on diesel was cut in half to Rs 1 per liter from Rs 2 per liter. The tariff on jet fuel and gasoline exports remained fixed at zero.

The government has reduced the windfall tax on crude petroleum by Rs 1,300 per tonne to Rs 5,000. According to media sources, the charge on jet fuel (ATF) has also been decreased to Rs 1.06 lakh per kilo liter (kL) from Rs 1.11 lakh/kL.

On November 16, the Centre cut the windfall tax on fuel and crude oil. The windfall tax on crude oil was reduced from Rs 9,800 per tonne to Rs 6,300 ($75.70), while the tax on diesel was cut in half to Rs 1 per liter from Rs 2 per liter. The tariff on jet fuel and gasoline exports remained fixed at zero.

At the time, export tariffs on petrol and ATF were Rs 6 per liter, and diesel was Rs 13 per liter. A windfall profit tax of Rs 23,250 per tonne was also placed on crude oil produced by businesses such as OIL and Natural Gas Corporation (ONGC).

If the global benchmark rises above $75 per barrel, a windfall tax is imposed on domestic crude oil. Diesel, ATF and petrol exports are subject to the charge if product cracks (or margins) exceed $20 per barrel.

The tax rates are reviewed every two weeks depending on the average of the previous two weeks' oil prices.