The government has cut the windfall tax on the export of diesel to Rs 2.5 per litre from Rs 7.5. The levy on overseas shipments of ATF has been reduced to Rs 1.50 a litre from Rs 6 a litre, while that on domestically-produced crude was cut in line with softening international oil prices, according to an official order.

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to Rs 4,350 per tonne from Rs 5,050 per tonne, the order dated February 15 said. The new tax rates come into effect from February 16.

The reduction follows an increase in the levy earlier this month.

The export levy on diesel is the lowest since the tax was introduced in July last year. The rate on export of jet fuel (ATF) equals the lowest rate hit in second half of December. 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, joining a growing number of nations that tax super normal profits of energy companies. At that time, export duties of Rs 6 per litre ($12 per barrel)each were levied on petrol and ATF and Rs 13 a litre ($26 a barrel) on diesel.

A Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied. The export tax on petrol was scrapped in the very first review.

RIL, which operates the world’s largest single-location oil refinery complex at Jamnagar in Gujarat, and Rosneft-backed Nayara Energy are primary exporters of fuel in the country.

The government levies taxon windfall profits made by oil producers on any price they get above a threshold of $ 75 per barrel.