Government lowers fuel tax while increasing windfall tax on crude petroleum

<p>With effect from Friday, the government increased the windfall tax on domestically produced crude oil from Rs 3,300 per tonne to Rs 4,600 per tonne.</p>
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<p>Special Additional Excise Duty (SAED) is the tax imposed.</p>
<p>However, an official announcement states that the SAED on diesel exports has been reduced from Rs 1.50 per liter to zero.</p>
<p>The charge on gasoline and jet fuel, or ATF, has been kept at zero.</p>
<p>The revised prices go into effect on March 1.</p>
<p>On July 1, 2022, India introduced windfall profit taxes, joining a number of other countries that put taxes on energy firms’ supernormal earnings.</p>
<p>Every two weeks, the average oil price over the preceding two weeks is used to reevaluate the tax rates.</p>