MOSCOW (MRC) -- The Indian government will cut the windfall tax on petroleum crude to 6,700 rupees (USD81.03) per metric ton from 7,100 rupees starting on Saturday, according to Reuters.
The government will also raise the windfall tax on diesel to 6 rupees per liter from 5.50 rupees, the notification said.
The windfall tax on aviation turbine fuel will increase to 4 rupees per liter from 2 rupees, while the levy on petrol will remain at zero, according to the notification.
In August, the government raised the windfall tax on petroleum crude to 7,100 rupees per ton from 4,250 rupees per ton.
India imposed the windfall tax on crude oil producers in July last year and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.
We remind, India's imports of Russian oil fell in August to a seven-month low as refiners curbed purchases due to planned maintenance outages at some plants and lower discounts for Russian grades. However, oil imports from Saudi Arabia surged to a multi-month high, according to preliminary data from Kpler and Refinitiv trade flows. Refiners in India have been snapping up discounted Russian oil after some Western buyers shunned purchases over Russia's full-scale invasion of Ukraine in February last year.