India’s government has announced an increase in the windfall tax on petroleum, raising it to INR 6,000 per metric ton starting 2 July 2024. This decision, detailed in a recent notification, marks a sharp rise from the previous rate of INR 3,250.
The windfall tax for diesel and aviation turbine fuel, however, remains unchanged at zero.
India adjusts its windfall tax every two weeks. This adjustment follows India’s recent reduction of the windfall tax on petroleum crude from INR 5,200 to INR 3,250 per ton, reflecting ongoing efforts to manage refining margins and regulate the export of gasoline, diesel, and aviation fuel.
This measure was implemented to regulate private refiners who opted to export fuel abroad to take advantage of lucrative refining margins rather than supplying it domestically.
