India raises windfall tax on petroleum crude to Rs. 9,600 effective from April 16
The Indian government announced on April 15, Monday, that it has increased the windfall tax on petroleum crude from Rs.6,800 to Rs.9,600 per metric ton, effective April 16. This tax adjustment, which occurs every two weeks, will remain at zero for diesel and aviation turbine fuel.
Earlier, on April 4, the government had raised the windfall tax on petroleum crude from Rs.4,900 to Rs.6,800 per metric ton. The increase in taxation manifests through the imposition of a Special Additional Excise Duty (SAED) on domestic crude oil producers.
Previously, on March 15, 2024, the Finance Ministry elevated the windfall tax on the sale of domestic crude oil to Rs.4,900 per tonne. This adjustment represented a rise from the prior two weeks' special additional excise duty (SAED) of Rs.4,600 per tonne.
In July 2022, the Indian government introduced a windfall tax targeting crude oil producers. Subsequently, this tax was expanded to cover exports of gasoline, diesel, and aviation turbine fuel (ATF). This policy aims to deter private refiners from capitalizing on elevated global prices by selling these fuels abroad, instead prioritizing domestic market supply. The government adjusts the windfall tax rate every two weeks.
