Government Reduces Windfall Tax on Crude Oil: Decrease from ₹5,200 to ₹3,250 per Metric Ton; Discounts Expected on Diesel, Petrol, and ATF

The government has announced a reduction in the Special Additional Excise Duty (SAED) on locally produced crude oil. As part of its regular review, the government has decreased the SAED from ₹5,200 per metric ton to ₹3,250 per metric ton under the windfall tax. 

This adjustment comes into effect starting today, June 15. The government will continue to review the windfall tax every 15 days.

Windfall Tax Reduced for the Third Time

Due to continuous adjustments, the government had reduced the windfall tax on May 16 and May 1. On May 16, the windfall tax was reduced from ₹8,400 per metric ton to ₹5,700 per metric ton. 

Similarly, on May 1, the windfall tax was reduced from ₹9,600 per metric ton to ₹8,400 per metric ton. Previously, there had been a consistent increase in the windfall tax. In the review on April 16, the windfall tax was increased from ₹6,800 per ton to ₹9,600 per ton.

Discount on Diesel, Petrol, and ATF

On the other hand, the government has decided to exempt excise duty on diesel, petrol, and Aviation Turbine Fuel (ATF) used in aircraft. This means that local refiners will continue to receive a duty exemption on the production of diesel, petrol, and ATF in the future. 

This will continue to benefit local companies operating refineries and selling refined products like diesel, petrol, and ATF in international markets.