India raises windfall tax on petroleum crude to 3,200 rupees/tonne

India increased its windfall tax on petroleum oil to 3,200 rupees per tonne from 1,700 rupees on Saturday, while keeping the windfall tax on diesel and aviation turbine fuel at zero, the government said late Friday.

On January 16, the government reduced the windfall tax on petroleum crude from 2,300 rupees per tonne.

From July 2022, India placed a windfall tax on crude oil producers and increased the charge on petrol, diesel and aviation fuel exports since private refiners preferred to sell fuel overseas to profit from high refining margins rather than selling locally. It adjusts the tax every two weeks.