India has cut windfall tax on crude oil and aviation turbine fuel (ATF) and reduced export tax on diesel, according to a government order dated Dec. 15.

It cut the tax on locally produced crude oil steeply to 1,700 rupees ($20.52) per tonne from 4,900 rupees, effective Friday, the order said.

The federal government also cut export tax on diesel to 5 rupees per litre from 8 rupees, while slashing the windfall tax on ATF to 1.5 rupees per litre from 5 rupees, the document showed.

The move comes amid a 14% slump in global crude LCOc1 since November. India is the world’s third largest consumer and importer of oil.

Meanwhile, Reuters had reported that India has bought Russian crude barrels at well below a $60 price cap agreed by the West.

India’s fuel demand climbed to an eight-month high in November, government data released last week showed.

On July 1, India imposed the windfall tax on crude oil producers and levies on exports of gasoline, diesel and aviation fuel after private refiners sought overseas markets to gain from robust refining margins, instead of selling at lower-than-market rates in the country.
Source: Reuters (Reporting by Nallur Sethuraman and Meenakshi Maidas in Bengaluru; Editing by Dhanya Ann Thoppil)