India’s government announced yesterday, 15 July 2024, an increase in the windfall tax on petroleum crude, raising it from INR 6,000 to INR 7,000 ($83.78) per metric tonne. This change will take effect starting today, 16 July.
As part of its ongoing efforts to manage refining margins and regulate the export of gasoline, diesel, and aviation fuel, the Indian government adjusts its windfall tax on petroleum crude every two weeks.
Earlier, the government increased the windfall tax on petroleum to INR 6,000 per metric ton starting 2 July, 2024, which was a sharp rise from the previous rate of INR 3,250.
The policy of adjusting windfall tax on petroleum crude was implemented to regulate private refiners who opted to export fuel abroad to take advantage of lucrative refining margins rather than supplying it domestically.
