Centre increases windfall tax on crude oil output

The government on Saturday raised the tax on windfall profits on locally produced crude oil by 37.5% to ₹11,000 per tonne and hiked the levy on diesel exports by 140% to ₹12 per litre, while reimposing it on exports of jet fuel at ₹3.50 per litre, as global oil prices surged this fortnight after the producers’ cartel – the Organisation of the Petroleum Exporting Countries and its allies – decided a steep cut in output.

The decision to hike the levies was taken after a fortnightly review of international oil prices on Saturday. The new rates will be applicable from Monday, according to a finance ministry notification. This is the seventh fortnightly review of the windfall profit tax on petroleum products since it was imposed from July 1, 2022.