The government has hiked the windfall tax on domestically produced crude oil to Rs 5,050 per tonne from Rs 1,900 per tonne in its fortnightly review, which would have an impact on the shares of state-owned oil producers such as ONGC and Oil India when the markets open on Monday.

The government in a notification issued last night revised the windfall tax rates effective from Saturday.

According to the revisions, tax on diesel for export will increase to Rs 7.5/litre from Rs 5/litre. Further, tax on overseas shipment of ATF will now increase to Rs 6/litre from Rs 3.5/litre, while that on petrol will continue to be nil. The government expects to collect Rs 25,000 crore this financial year from windfall gains tax.

They added that the government has not prepared any estimates for the collections next year as levies are dynamic and subject to fortnightly changes.

Commerce ministry data showed that India’s export of Motor Gasoline increased by 222.50 per cent during 2021-22 compared with 2020-21.

During April-November 2022-23, it registered a positive growth of 42.63 per cent over April-November 2021-22. Indonesia is the most dominant market for the product. Exports to Oman witnessed the highest positive growth of 672.30 per cent during April-November 2022-23 compared with April-November 2021-22.

India’s export of ATF increased by 171.10 per cent during 2021-22 over 2020-21. During April-November 2022-23, it registered a positive growth of 130.72 per cent over April-November 2021-22.

The Netherlands is the most dominant market for the product. Exports to all the top 10 regions witnessed positive growth during April-November 2022-23 compared with April-November 2021-22. Brazil is the new destination of export for the product during the current period.

India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.