The government has reduced the windfall tax on domestically produced crude oil from ₹5,200 to ₹3,250 per tonne with effect from Saturday.

The tax is levied in the form of Special Additional Excise Duty (SAED). SAED for the export of diesel, petrol and aviation fuel or ATF has been maintained at ‘zero’.

The new rates will be effective from June 15, an official notification said.

India imposed windfall profits taxes for the first time on July 1, 2022, joining a host of countries that tax supernormal profits from energy companies.

Tax rates are revised every fortnight based on average oil prices over the past two weeks.