The Centre has cut windfall tax on domestically produced crude oil to one thousand 850 rupees per tonne from two thousand 100 rupees per tonne. In an official notification, the Government said that it has come into effect today. Windfall tax on the export of diesel and aviation turbine fuel has been retained at nil.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks. A windfall tax is a higher tax rate on a particular company or industry on significantly above-average profits due to economic conditions.