Govt hikes windfall tax on crude to Rs 6,800 for 5th time since Feb

The Indian government has raised its windfall tax on petroleum crude for the fifth time since February to Rs 6,800 ($81.43) a metric tonne from Rs 4,900 with effect from April 4, the government said in a notification on Wednesday.

The windfall tax, which is revised fortnightly, remains at zero for diesel and aviation turbine fuel.

On March 15, the government raised the windfall tax on petroleum crude to Rs 4,900 a metric ton from Rs 4,600.

India introduced the tax in July 2022 on crude oil producers, and on exports of gasoline, diesel and aviation fuel, because private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally.