Centre hikes windfall tax on petroleum crude

Updated - March 01, 2024 12:38 am IST

Published - February 29, 2024 11:18 pm IST

The Government has hiked its windfall tax on petroleum crude. File

The Government has hiked its windfall tax on petroleum crude. File | Photo Credit: Reuters

The Government hiked its windfall tax on petroleum crude to ₹4,600 rupees a metric ton from ₹3,300 with effect from March 1, according to a Government Order released on February 29.

Also read: Explained | What is windfall tax and why are countries imposing it on the energy sector right now?

India 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.

On Feb. 15, the Centre raised the windfall tax on petroleum crude to ₹3,300 a metric ton from ₹3,200 and hiked the tax on diesel to ₹1.5 a litre from zero. This was effective from Feb. 16.

India 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.

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