The Union government of India has increased the windfall tax on petroleum crude oil from Rs 1,300 to Rs 2,300 per tonne, stated media reports. According to the reports, in contrast, the tax on diesel has been eliminated with the removal of a one-rupee-per-litre windfall tax on aviation fuel.

This modification follows earlier impositions in July 2022, when a windfall tax was imposed on crude oil producers, extending to petrol, diesel and aviation fuel exports. Rather than selling domestically, private refiners sought global markets to capitalise on high refining margins.