Overview

• India's union finance ministry has lowered the windfall tax on domestic crude oil sales from ₹9,800 a tonne to ₹6,300 a tonne, and on diesel exports from ₹2 to Re 1 per litre.
• The revised tax rates came into effect from Thursday, November 16, 2023.
• The windfall tax on petrol and aviation turbine fuel (ATF) remains unchanged at zero.
• The windfall tax is reviewed every fortnight, based on average oil prices over the previous two weeks.
• The Indian government first imposed a windfall tax on the sale of locally produced crude on July 1, 2022, as oil exploration and production companies made huge profits after crude-oil prices hit multi-year highs following Russia’s invasion of Ukraine.