India Raises Windfall Tax on Crude Oil, Reduces Taxes on Diesel and Aviation Fuel

The Indian government has increased the windfall tax on petroleum crude oil from Rs 1,300 to Rs 2,300 per tonne, impacting upstream oil companies like ONGC and Oil India Ltd. This adjustment is expected to help the government cope with rising international oil prices and manage its fiscal deficit.

The tax on diesel and aviation turbine fuel has been reduced by eliminating a Rs 0.5 per litre tax. The move aims to balance the economic impact of increasing oil prices, benefitting the government’s revenue while easing the burden on consumers and certain sectors.