On August 18, the Government of India slashed the crude oil tax in its third fortnightly windfall profits tax review and lowered it from Rs 17,750 per ton to Rs 13,000 per ton.

According to a circular issued by the centre, the export duty on aviation turbine fuel (ATF) was raised from zero to Rs 2 per litre, while the export duty on diesel was raised from Rs 5 per litre to Rs 7 per litre. These changes will take effect on August 19, 2022.

At a previous review meeting, the government removed export duties on gasoline and aviation turbine fuel (ATF).
The centre scrapped a tax on oil exports a month ago and cut windfall taxes less than three weeks after levying other fuels; windfall taxes on diesel and jet fuel shipping were cut by Rs 2 a litre.

On July 1, the Union Ministry of Finance imposed export duties on gasoline and diesel and a windfall profits tax of Rs 66,000 crore on locally-produced crude after some refiners shipped “massive profits” overseas at the expense of domestic supplies.

With this, India joins a global coalition of select countries that tax oil companies’ windfall gains from soaring energy prices.