India cuts windfall tax on petroleum crude

(Reuters) – India cut its windfall tax on petroleum crude to 1,700 rupees ($20.53) a tonne from 2,300 rupees a tonne, according to a government notification on Monday.

The cut will be effective from Jan. 16, the order said.

On Jan. 2, the government had lifted the windfall tax on petroleum crude oil to 2,300 rupees a tonne from 1,300 rupees a tonne.

From July 2022, India imposed a windfall tax on crude oil producers, 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. It revises the tax fortnightly.

($1 = 82.8030 Indian rupees)

(Reporting by Kanjyik Ghosh and Nikunj Ohri; Editing by Andrew Heavens and Susan Fenton)