In line with firming global oil prices, the Central Government has raised the seven-month-old windfall profit tax levied on domestically-produced crude oil as well as on the export of diesel and aviation turbine fuel (ATF), an official statement dated 3 February stated.
According to the notice, the levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been hiked to ₹5,050 per tonne from ₹1,900 per tonne.
Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels such as petrol, diesel and ATF.
The Centre has also raised the tax on export of diesel to ₹7.5 per litre from ₹5, and the same on overseas shipments of ATF to ₹6 a litre from ₹3.5 a litre.
The new tax rates came into effect from Saturday, 4 February.
The levy on both domestic crude oil and fuel exports is now off the lows it had hit last month.
Windfall tax to continue for now
Top government officials have said thay windfall profit tax on domestically produced crude oil and export of fuel is expected to give about ₹25,000 crore in the current fiscal ending 31 March, 2023.
The levy will continue for now as international oil prices are up again, an official was quoted as saying by PTI.
