New Delhi, Feb. 29 -- The government hiked the windfall tax on petroleum crude to Rs.4,600 a metric ton from Rs.3,300 with effect from March 1, according to a government order released on Thursday, February 29. The government also cut the windfall tax on diesel to zero from 1.50 per litre effective March 1, the order showed. The tax on petrol and aviation turbine fuel will continue to be zero.

This is the third time this month that the government hiked windfall tax on domestically produced crude oil. On February 15, the windfall tax was raised to Rs.3,300 per tonne from Rs.3,200 per tonne and the tax on diesel was raised to Rs.1.5 a litre from zero.

India imposed a windfall tax on crude oil producers from July 2022 and extended the levy...