The Indian government raises the tax on crude oil and diesel profits

Recently, the Indian government announced that it will increase the windfall tax on crude oil from 3200 rupees per ton to 3300 rupees, and the windfall tax on diesel will also be raised to 1.50 rupees per liter, which has previously dropped to 0. In addition, the windfall tax on aviation turbine fuel and gasoline will continue to be zero.



In early February, India raised the windfall tax on crude oil from 1700 rupees per ton to 3200 rupees, while the windfall tax on diesel, automatic transmission oil, and gasoline was 0.



Starting from July 2022, India has imposed a windfall tax on crude oil producers and expanded it to include export taxes on gasoline, diesel, and aviation turbine fuels. Previously, private Indian refiners sold a large amount of fuel overseas in order to profit from strong refining profits, rather than selling it locally. Therefore, India has begun to impose windfall taxes on these private refiners to prevent the outflow of refined products.