Government raises crude oil windfall tax, reduces diesel export levy

01 Nov 2023 CW Team

The government announced an increase in the windfall profit tax on domestically produced crude oil and a reduction in the levy on diesel exports. According to an official notification, the Special Additional Excise Duty (SAED) on domestically produced crude oil was raised from Rs 9,050 to Rs 9,800 per tonne.

Additionally, the SAED on diesel exports was decreased from Rs 4 to Rs 2 per litre, and for jet fuel (ATF), it was reduced from Rs 1 to nil, as stated in the notification. The export of petrol will continue to have a zero SAED.

India had initially imposed windfall profit taxes on July 1 the previous year, following the trend of several other nations in taxing supernormal profits of energy companies. At that time, export duties of Rs 6 per litre ($ 12 per barrel) were imposed on petrol and ATF, and Rs 13 a litre ($ 26 a barrel) on diesel. Additionally, a windfall profit tax of Rs 23,250 per tonne ($ 40 per barrel) was imposed on crude oil produced by companies like Oil and Natural Gas Corporation (ONGC).

The tax rates are subject to review every fortnight, based on average oil prices from the preceding two weeks. A windfall tax is imposed on domestic crude oil if global benchmark rates rise above $ 75 per barrel. Similarly, the levy is applied on the export of diesel, ATF, and petrol if product cracks (or margins) rise above $ 20 per barrel. Product cracks or margins represent the difference between the cost of crude oil (raw material) and finished petroleum products.

In October, international crude oil prices averaged $ 90.17 per barrel.

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..