India hikes windfall tax on crude oil

(Reuters) – India has hiked the windfall tax on crude oil while reducing the tax on diesel and aviation turbine fuel, according to a government notification.

The government hiked the windfall tax on petroleum crude oil to 2,300 Indian rupees ($27.63) a ton from 1,300 rupees, it said.

A tax on diesel of 0.5 rupee per litre was eliminated, it said as was a one rupee per litre windfall tax on aviation fuel.

India imposed a windfall tax on crude oil producers in July 2022 and extended the levy on exports of gasoline, diesel and aviation fuel as private refiners wanted to sell fuel overseas to make gains from robust refining margins instead of selling locally.

($1 = 83.2375 Indian rupees)

(Reporting by Baranjot Kaur in Bengaluru and Nikunj Ohri; editing by Jason Neely)