Government hikes windfall tax on petroleum crude

Windfall tax hike news: The government hiked its windfall tax on petroleum crude to 4,600 rupees a metric ton from 3,300 rupees with effect from March 1, according to a government order released on Thursday.

Windfall tax on Diesel, Windfall tax on Petrol

The government also cut the windfall tax on diesel to zero from 1.50 per litre effective March 1, the order showed. The tax on petrol and aviation turbine fuel will continue to be nil.

Windfall tax on Petroleum crude

On February 16, the government raised the windfall tax on petroleum crude to 3,300 rupees a metric ton from 3,200 rupees and hiked the tax on diesel to 1.5 rupees a litre from zero.

The government imposed a windfall tax on crude oil producers from July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel, as private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally. The government revises the tax fortnightly.