India hikes windfall tax on petroleum crude to Rs 4250/metric tonne

The windfall tax on petroleum crude has been significantly hiked to Rs 4,250 per tonne from Rs 1,600 with effect from August 1.

The government also raised windfall tax on diesel to 1 rupee per litre from nil earlier. There is no change in the windfall tax on petrol and aviation turbine fuel.

The move comes after the government raised the windfall tax on petroleum crude to Rs 1,600 per tonne from zero in the month of July.

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.