In a move aimed at regulating the petroleum sector, the Indian government on Monday announced an increase in the windfall tax on petroleum crude. Effective from April 16, the tax rate has been raised to 9,600 rupees ($114.99) per metric ton, up from the previous rate of 6,800 rupees, reported Reuters.
This revision, which occurs every fortnight, maintains the windfall tax at zero for diesel and aviation turbine fuel, providing some relief in those sectors.
The government had previously raised the windfall tax on petroleum crude to 6,800 rupees per metric ton from 4,900 rupees on April 4.
India started the tax on crude oil producers and on exports of gasoline, diesel and aviation fuel in July 2022 to regulate private refiners who wanted to sell fuel overseas instead of locally in a bid to gain from robust refining margins.
(With inputs from Reuters)
