The government has reduced windfall tax on domestically-produced crude oil to ₹5,200 per tonne from ₹5,700 with effect from Saturday.
The tax is levied in the form of Special Additional Excise Duty (SAED).
SAED on the export of diesel, petrol and jet fuel or ATF has been retained at ‘nil’.
The new rates are effective from June 1, an official notification said.
India first imposed windfall profit taxes on July 1, 2022, joining a host of nations that tax supernormal profits of energy companies.
At that time, export duties of ₹6 per litre ($12 per barrel) each were levied on petrol and ATF and ₹13 a litre ($26 a barrel) on diesel.
The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.
Meanwhile, Jet fuel or ATF price on Saturday was reduced by a steep 6.5 per cent and that of commercial LPG used by hotels and restaurants by ₹69 per 19-kg cylinder on declining international oil prices.
Aviation turbine fuel (ATF) price was cut by ₹6,673.87 per kilolitre, or 6.5 per cent, to ₹94,969.01 per kl in the national capital, according to a price notification of state-owned fuel retailers. The reduction follows a marginal 0.7 per cent (₹749.25 per kl) increase on May 1.
The ATF rate in Mumbai was slashed to ₹88,834.27 per kl from ₹95,173.70.
Prices differ from state to state depending on the incidence of local taxes.
Alongside, oil firms also cut the price of commercial LPG by ₹69 to ₹1,676 per 19-kg cylinder.
This is the third straight monthly reduction in rates. The price was on May 1 reduced by ₹19 per cylinder and by ₹30.5 on April 1.
The price of cooking gas used in domestic households, however, remained unchanged at ₹803 per 14.2-kg cylinder. April 1 saw the first reduction in commercial LPG prices since January.
The rate had gone up by ₹14 per cylinder on February 1 and ₹25.5 on March 1.
State-owned Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation revise prices of ATF and cooking gas on the first day of every month based on the average price of benchmark international fuel and foreign exchange rate.
Prices of petrol and diesel continue to remain frozen. Rates had been cut by ₹2 per litre in mid-March.
Petrol costs ₹94.72 a litre in Delhi while diesel is priced at ₹87.62.