India hikes windfall tax on petroleum crude to Rs 9,800/ton

(Representative image)

India on October 31 hiked windfall tax on petroleum crude to Rs 9,800/ton from Rs 9,050/ton with effect from November 1, according to a government notification.

The windfall tax on aviation turbine fuel has been cut to nil from 1 rupee per litre and diesel reduced to Rs 2/litre from Rs 4/litre, the notification added.

Crude oil prices are trading around $85 per barrel on account of supply tightness and geopolitical tensions.

In the last fortnightly review on October 17, the government had cut special additional excise duty (SAED) on crude petroleum to Rs 9,050/ton with effect from October 18.

India imposed the windfall tax on crude oil producers in July, 2022 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.