Govt cuts windfall tax on petroleum crude, no change in duty on diesel and petrol

The Centre on Monday cut the windfall tax on petroleum crude to Rs 4,100 per tonne from Rs 6,400 per tonne effective from May 2. It has reduced the windfall tax on domestic production of crude by nearly 36 per cent.

The government, which revises tax rates fortnightly based on oil price fluctuations, has made no change in the windfall tax on petrol, diesel, and aviation turbine fuel.

On April 4, the government cut the windfall tax on petroleum crude to zero from Rs 3,500 per tonne previously. The levy on crude was hiked to Rs 6,400 per tonne on April 19.

India last July imposed the windfall tax on crude oil producers and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.

(With inputs from Reuters)