With effect from May 2, the Centre on Monday reduced the windfall tax on petroleum oil from Rs 6,400 per tonne to Rs 4,100 per tonne. It has over 36% lessened the windfall tax on domestic crude output.

The government has not altered the windfall tax on petrol, diesel and aviation turbine fuel, which is adjusted by the government every two weeks based on changes in the price of oil.

The government reduced the windfall tax on petroleum crude from Rs 3,500 per tonne to zero on April 4. On April 19, the tax on crude was raised to Rs 6,400 per tonne.

India implemented the windfall tax on crude oil producers in July and increased the duty on the exports of petrol, diesel and aviation fuel in response to private refiners who preferred to profit from high refining margins in foreign markets to domestic sales.

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