The government is cutting the windfall tax on crude oil

The government has reduced the windfall tax on crude oil from ₹5,200 to ₹3,250 ($38.90) per tonne with effect from June 15, according to a notice issued on Friday.

The tax, which is reviewed every two weeks, remained unchanged at zero for diesel and aviation turbine fuel.

The government on June 1 reduced the windfall tax on crude oil from ₹5,700 to ₹5,200 per tonne.

Starting in July 2022, India began taxing crude oil production and exports of gasoline, diesel and jet fuel to regulate private refiners that wanted to sell fuel abroad rather than locally to take advantage of robust refining margins.