Government raises windfall tax on petrol, diesel and aviation fuel

New Delhi : According to a government order dated January 2, the Central Government increased the windfall tax on petroleum, crude oil, and aviation turbine fuel.

The order, as reported by moneycontrol.com, increased the windfall tax on crude oil from 1,700 rupees ($20.55) per tonne to 2,100 rupees ($25.38) per tonne as of Tuesday.

As shown in the document, the federal government also increased the export tax on diesel from 5 to 7.5 rupees per litre, and increased the windfall tax on ATF from 1.5 to 4.5 rupees per litre.

Oil importer and consumer powerhouse India has been purchasing barrels of Russian crude at prices significantly lower than a $60 Western price ceiling.

Private refiners sought out overseas markets to profit from robust refining margins rather than selling at lower-than-market rates in the country, prompting the government to impose the windfall tax on crude oil producers and levies on exports of gasoline, diesel, and aviation fuel in July.