On Friday, March 15, the administration of Narendra Modi raised the windfall tax on crude oil, which will take effect on March 16.
A formal government decree states that the windfall tax on crude petroleum has gone from ₹4,600 per tonne to ₹4,900 per tonne. Notably, the windfall tax on gasoline, diesel, and aviation turbine fuel (ATF) is still zero and won’t change.
On July 1, 2022, India implemented a windfall tax for the first time, joining an increasing number of countries that tax energy corporations’ supernormal profits. At that time, export tariffs on gasoline and ATF were ₹6 per litre ($12 per barrel), while those on diesel were ₹13 per liter ($26 per barrel).
The charge is applied to the export of gasoline, diesel, and ATF if the product cracks or margins over $20 per barrel. The distinction between completed petroleum products and crude oil, or raw material, is known as product cracks or margins.
