The government has hiked the windfall tax on domestically produced crude to Rs 4,400 per tonne, while it cut the levy on the export of diesel to its lowest of Rs 0.50 per litre and to nil on jet fuel (ATF), according to an official order.
According to the new revisions, the Special Additional Excise Duty on crude petroleum will be increased from Rs 4,350 per tonne to Rs 4,400 per tonne. This will come as a setback for the petroleum industry as it will lead to increased prices for crude petroleum produced by companies such as Oil and Natural Gas Corporation.
Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels such as petrol, diesel and aviation turbine fuel (ATF).
