The Centre, late on Monday, slashed the windfall tax on locally-produced crude oil to Rs 3,500 per tonne from Rs 4,400 per tonne earlier. However, it hiked the export duty on diesel from Rs 0.50 per litre to Rs 1 per litre.
Petrol and Aviation Turbine Fuel (ATF) have been exempted from the export levy. The new rates will be effective March 21. This is the second rate cut in March.
Earlier, on March 4, the Centre had slashed the windfall tax on the export of diesel to an all-time low of Rs 0.50 per litre. The levy on crude oil was hiked to Rs 4,400 per tonne from Rs 4,350 per tonne earlier.
Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).
