After a gap of two months, the government has reimposed a windfall tax of Rs 1,600 per tonne from nil on domestic crude production as it spiked in the global market and the Indian basket was around $80 per barrel.

However, the SAED on petrol, diesel and aviation turbine fuel (ATF) will remain unchanged at Nil.

Global crude oil prices have risen again on the back of supply cuts by Saudi Arabia and Russia. Consequently, the Indian crude oil basket after averaging below $75 per barrel in May and June this year touched $80.92 per barrel on July 13.

The government has kept $75 as the trigger for the windfall tax levy, below which the tax is nil. India’s crude oil basket has been consistently averaging below $75/bbl. The government reviews windfall tax levies every fortnight.

In May this year, the Indian government cut the windfall tax on petroleum crude to zero from Rs 4,100 per tonne. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.

India first imposed windfall profit taxes on July 1 last year, joining a growing number of nations that tax supernormal profits of energy companies.

At that time, export duties of Rs 6 per litre each were levied on petrol and ATF and Rs 13 a litre on diesel.