India hikes windfall tax on petroleum crude

The Indian government has raised its windfall tax on petroleum crude for the fifth time since February to 6,800 Indian rupees ($81.43) a metric ton from 4,900 rupees with effect from April 4, the government said in a notification on Wednesday.

The windfall tax, which is revised fortnightly, remains at zero for diesel and aviation turbine fuel.

On March 15, the government raised the windfall tax on petroleum crude to 4,900 rupees a metric ton from 4,600 rupees.

India introduced the tax in July 2022 on crude oil producers, and on exports of gasoline, diesel and aviation fuel, because private refiners wanted to sell fuel overseas to gain from robust refining margins instead of selling locally.