Windfall tax on diesel slashed to Rs 0.50 per litre, nil on ATF

New Delhi, March 4

The government slashed windfall profit tax on export of diesel to its lowest of Rs 0.50 per litre and nil on jet fuel (ATF) while the levy on domestically produced crude oil was marginally increased, according to an official order.

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has hiked to Rs 4,400 per tonne from Rs 4,350 per tonne, the order dated March 3 said.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).

The government has also cut the tax on export of diesel to Rs 0.50 per litre from Rs 2.50, and the same on overseas shipments of ATF was cut to nil from Rs 1.50 a litre.

The new tax rates come into effect from March 4, the order said.

This is the second reduction in rates in a fortnight. Rates were cut on February 16.

The export levy on diesel and ATF is the lowest since the tax was introduced in July last year.

The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.