The Indian government has announced revised tax rates on domestically produced crude oil and diesel. Effective from September 16, the windfall tax on domestically produced crude oil will be increased to Rs 10,000 per tonne, up from the previous rate of Rs 6,700 per tonne. The export duty on diesel has also been slashed to Rs 5.50 per litre, down from Rs 6 per litre, while the duty on Aviation Turbine Fuel (ATF) has been reduced to Rs 3.50 per litre from the earlier rate of Rs 4 per litre. It is important to note that there will be no export duty on petrol.
This revision follows the previous adjustment made on September 2, when the windfall tax on domestically produced crude petroleum was marginally reduced to Rs 6,700 per tonne from Rs 7,100 per tonne. Earlier, on July 1, 2022, the government had imposed an export duty of Rs 6 per litre on petrol and ATF, as well as a duty of Rs 13 per litre on the export of diesel. Additionally, a windfall tax of Rs 23,250 per tonne had been imposed on the sale of domestic crude.
These tax rates have been subject to review on a fortnightly basis by the government, based on global crude oil prices. This approach allows for adjustments that align with market conditions and aims to strike a balance between revenue generation, consumer affordability, and the stability of the domestic oil industry.
– Government of India
– Indian Ministry of Finance