The special additional excise duty (SAED) on diesel was also halved to rupee one from Rs 2 per litre, according to government notification.
(Photo: IStock)
The Central government has slashed windfall tax on crude petroleum to Rs 6,300 per tonne from Rs 9,800 while the special additional excise duty (SAED) on diesel was also halved to rupee one from Rs 2 per litre, according to the government notification.
Also, the windfall tax on aviation turbine fuel and petrol continue to be nil.
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It is to be noted that in the last fortnightly review on October 31, the Centre had hiked windfall tax on petroleum crude to Rs 9800 per tonne from earlier Rs 9050 per tonne with effect from November 1.
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On July 1 last year, India first imposed windfall profit taxes. It joined a growing number of nations that tax supernormal profits of energy companies.
At that time, export duties of Rs 6 per litre each were levied on petrol and ATF and Rs 13 a litre on diesel.
It is worth highlighting that a windfall tax is levied on domestic crude oil if rates of the global benchmark rise above USD 75 per barrel.
Export of diesel, ATF and petrol attract the levy if product or margins rise above USD 20 per barrel.
On Thursday, the oil prices fell extending losses from the previous session, as signals of higher supply from the US met worries about lackluster energy demand from China.
Last month, government reduced SAED on crude petroleum from Rs 12,100 per tonne to 9,050 per tonne with effect from October 18, 2023.
The decision came at a time when the prevailing geopolitical tension in West Asia has raised possibilities of crude oil price hikes.
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