India cuts windfall tax on petroleum crude

An Oil and Natural Gas Corp's (ONGC) well is pictured in an oil field on the outskirts of the western city of Ahmedabad, India, February 10, 2016. Picture taken February 10, 2016. REUTERS

The Indian government has cut the windfall tax on petroleum crude to 3,250 Indian rupees ($38.90) per metric ton from 5,200 rupees, effective June 15, according to a notification issued on Friday.

The tax, which is revised every fortnight, remained unchanged at zero for diesel and aviation turbine fuel.

India on June 1 cut the windfall tax on petroleum crude to 5,200 rupees per metric ton from 5,700 rupees.

From July 2022, India started taxing crude oil production and exports of gasoline, diesel and aviation fuel to regulate private refiners which wanted to sell fuel overseas instead of locally to gain from robust refining margins.