India has cut its windfall tax on crude oil and exports of aviation turbine fuel and diesel
India has cut its windfall tax on crude oil and exports of aviation turbine fuel and diesel, according to a government notification dated Feb. 15.
Windfall tax on crude was cut to 4,350 rupees ($52.60)/t from 5,050 rupees/t, effective Thursday.
The government also cut export tax on aviation turbine fuel to 1.50 rupees/l from 6 rupees/l, and reduced export tax on diesel to 2.50 rupees/l from 7.50 rupees/l, the notification said.
India had in July imposed the windfall tax on crude oil producers and levies on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling it cheap at home
The cuts came as Indian refiners continued to stock up discounted Russian fuel amid a steady increase in domestic consumption.
The windfall taxes had been weighing on profits of Indian refiners and explorers, with companies like Reliance Industries, Vedanta Ltd, Oil India and Mangalore Refinery and Petrochemicals Ltd
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