India cuts windfall tax on petroleum crude

(Reuters) -India has cut the windfall tax on petroleum crude, aviation turbine fuel and diesel, according to a government notification on Tuesday.

The windfall tax on petroleum crude will be reduced to 9,050 Indian rupees ($108.74) per ton from 12,100 Indian rupees per ton, effective Oct. 18.

The government also cut the windfall tax on aviation turbine fuel to 1 rupee per litre from 2.50 rupees per litre and reduced windfall tax on diesel to 4 rupees per litre from 5 rupees per litre.

On Sep 30, the government had raised windfall tax on petroleum crude to 12,100 rupees per ton from 10,000 rupees per ton.

India imposed the windfall tax on crude oil producers in July last year and extended the levy 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 at home.

($1 = 83.2240 Indian rupees)

(Reporting by Jose Joseph and Nikunj OhriEditing by Alistair Bell)