India cuts windfall tax on diesel, crude oil

NEW DELHI, Nov 16 (Reuters): India has cut the windfall tax on diesel and crude oil on Thursday, according to a government notification.

The government cut the windfall tax on crude oil to 6,300 Indian rupees ($75.70) a tonne from 9,800 rupees a tonne while cutting the diesel windfall tax to 1 rupee per litre from 2 rupee per litre, the notification said.

The windfall tax on gasoline and aviation turbine fuel (ATF) remained unchanged at zero, it added.

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