Government reduces windfall tax on crude oil from today: From ₹2,100 to ₹1,850 per metric tonne, exemptions on diesel, petrol and ATF remain

The government had started imposing windfall tax for the first time from July 1, 2022 on export of domestically produced crude oil.

The government has reduced the Special Additional Excise Duty (SAED), i.e. windfall tax, on export of domestically produced crude oil.

In its regular review, the government has reduced the windfall tax from Rs 2,100 per metric tonne to Rs 1,850 per metric tonne. This change has come into effect from today i.e. 31 August. The government reviews the windfall tax every 15 days.

Earlier on August 16 Windfall tax was reduced on
Earlier, on August 16, the government had reduced the windfall tax by 54.34% from Rs 4,600 per metric tonne to Rs 2,100 per metric tonne. Accordingly, the government has reduced the windfall tax by 59.78% in two times in the month of August.

Discount on diesel, petrol and ATF remains intact
On the other hand, the government has decided to keep the export duty on diesel, petrol and aviation turbine fuel (ATF), the fuel used in aircraft, at zero.

This means that the exemption being given to domestic refiners on export of diesel, petrol and ATF will continue in future as well. This will continue to benefit those domestic companies which run refineries and sell refined products like diesel, petrol and ATF in markets outside the country.