The government announced a significant reduction in the windfall tax on domestically produced crude oil to zero per tonne, effective September 18, 2024. This tax, imposed as a special additional excise duty (SAED), is adjusted biweekly based on average oil prices over the preceding two weeks.
Previously, effective August 31, the windfall tax on crude petroleum was set at ₹1,850 per tonne. In addition, the SAED on the export of diesel, petrol, and jet fuel (ATF) will remain at zero. This change reflects the government’s ongoing adjustments to tax policies in response to fluctuating global oil prices.
India initially introduced windfall profit taxes on July 1, 2022, joining various other countries in taxing the extraordinary profits of energy companies.
The latest adjustment is outlined in an official notification, emphasizing the government’s strategic approach to managing the domestic oil market.
