Government cuts windfall tax on crude petroleum to Rs.5,000/tonne, jet fuel price also down

The government announced a decrease in the windfall tax on crude petroleum and jet fuel by Rs.1,300 per tonne, effective from December 1, as per a Moneycontrol report.

The tax on crude petroleum has been reduced from Rs.6,300/tonne to Rs.5,000/tonne, while the levy on jet fuel has been adjusted to Rs.1.06 lakh per kilo litre (kL) from the previous Rs.1.11 lakh/kL, it added

During the previous review on November 16, the government slashed the windfall tax on crude petroleum by Rs.3,500 from Rs,9,800 per tonne to Rs.6,300 per tonne. This was in line with the downward trend in global oil prices.

Before this, on November 1, the government raised the tax on crude oil from Rs. 9,050 per tonne to Rs.9,800 per tonne. Subsequently, the duty on diesel exports was reduced by half to Rs.2/litre, while the levy on jet fuel was eliminated, bringing it down from Re 1/litre to nil.

Due to a decline in international oil prices since the last adjustment, there has been a necessity for a reduction.