Centre reimposes windfall tax on crude oil, at Rs 6,400 per tonne; scraps duty on diesel

The government started levying windfall gains to tax super-normal profits of oil producers and fuel exporters. It had mandated that companies sell the equivalent of 50 per cent of their gasoline exports and 30 per cent of their diesel exports domestically in the current fiscal year.

The windfall tax, which is levied in form of cesses under the central excise department, is revised every fortnight based on global crude oil prices.

Initially, the government had levied an export duty of Rs 6 per litre each on petrol and ATF, Rs 13 a litre on diesel, and Rs 23,250 per tonne ($40 per barrel) on domestic crude oil.

The windfall tax on petrol was scrapped in the very first review.

(With agency inputs)