India hikes windfall tax on crude petroleum by ₹300 to ₹4,900 per tonne

The Narendra Modi government on Friday (March 15) increased the windfall tax on crude petroleum effective from March 16.

According to an official government order, the windfall tax on crude petroleum has been increased to ₹4,900 per tonne, up from the previous rate of ₹4,600. Notably, the windfall tax on diesel, petrol and aviation turbine fuel (ATF) remains unchanged and will continue to be nil.

India first imposed windfall tax on July 1, 2022, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of ₹6 per litre ($12 per barrel) each were levied on petrol and ATF and ₹13 a litre ($26 a barrel) on diesel.  The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.