Starting November 1, India has increased the windfall tax on petroleum crude from Rs 9,050/ton to Rs 9,800/ton. Simultaneously, the tax on aviation turbine fuel has been removed entirely, down from 1 rupee per litre.
Additionally, the tax on diesel has been reduced to Rs 2/litre from Rs 4/litre. This adjustment comes as global crude oil prices remain elevated at around $85 per barrel due to supply constraints and geopolitical uncertainties.
Notably, India had previously imposed a windfall tax on crude oil producers in July 2022, extending it to exports of gasoline, diesel, and aviation fuel, in response to private refiners seeking to capitalize on strong refining margins in international markets.