The Centre has hiked the windfall tax on domestic crude oil to Rs 4,250 per tonne from Rs 1,600 per tonne and diesel to Rs 1 per litre from zero.

The special additional excise duty — or windfall tax — will take effect from Tuesday, according to a notification issued late Monday night.

The windfall tax on petrol and aviation turbine fuel has been left unchanged.

In May, the Indian government cut the windfall tax on crude to zero from Rs 4,100 per tonne.

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

Global crude oil prices have risen again on the back of supply cuts by Saudi Arabia and Russia.

The Indian crude oil basket after averaging below $75 per barrel in May and June touched $80.37 per barrel in July.

India first imposed windfall profit tax a year ago in July, 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.

Meanwhile, jet fuel or ATF price was hiked a steep 8.5 per cent — the second increase in a month, while the commercial cooking gas rate was cut Rs 100 per cylinder in line with divergent trends in international benchmarks.

Saudi contract price (CPP), the benchmark used for the pricing of LPG, has fallen after having peaked in March which is reflected in domestic prices, industry officials said.

Globally, jet fuel prices have increased in line with the firming up of global crude oil prices, necessitating the hike in ATF rates.

Aviation turbine fuel (ATF) price was increased 7,728.38 per kilolitre, or 8.5 per cent, in the national capital to Rs 98,508.26 per kl, according to a price notification of state-owned fuel retailers.

The ATF price, which varies from state to state depending on the incidence of local sales tax or VAT, has been increased on the firming up of global rates that followed four months of decline.