India cut its windfall tax on crude oil to zero from Rs 3,500 ($42.56) a tonne and halved the tax on diesel to 0.5 rupee per litre, a government notification said on Tuesday.
India in July imposed a windfall tax on crude oil producers and on exports of gasoline, diesel and aviation fuel, to encourage private refiners to sell fuel products domestically instead of shipping them overseas to take advantage of robust refining margins in global markets.
The government adjusts the tax rates twice a month according to global crude oil price movements.
The windfall tax on exports of aviation turbine fuel (ATF) and petrol, which had previously been cut to zero, were left unchanged, the notification said.
