The windfall taxes are likely to offset almost half of the Centre’s revenue loss of an estimated Rs 85,000 crore in FY23 from the excise duty cuts on petrol and diesel carried out in May, according to internal calculations by the finance ministry.

Sources said the ministry has estimated that the windfall tax in the current fiscal is likely to collect about Rs 40,000 crore. They also indicated that the super profit tax is likely to continue till the time the global crude prices hover above an average price of $70-75 per barrel.

They said the Centre is not maintaining separate data yet and they are being collected through the special additional excise duty and are subsumed in excise duty receipts. The extra receipts would offset partly the Centre’s revenue loss of an estimated Rs 85,000 crore in FY23 from the excise duty cuts on petrol and diesel in May, the sources said.

In the seventh fortnightly review on October 15, the government raised the windfall tax on domestically-produced crude oil to Rs 11,000 from Rs 8,000 per tonne, and the levy on the export of diesel to Rs 12 from Rs 5 per litre, citing a rise in global crude prices in the last fortnight. It also reintroduced a levy of Rs 3.5 per litre on the export of jet fuel, which was removed in the previous fortnightly review.

Benchmark Brent crude hovered around $94 per barrel on Wednesday, while the Indian basket of crude this month averaged about $91.60 per barrel, higher than $90.71 per barrel recorded in September.

While the windfall profit tax is calculated by taking away any price that producers are getting above a threshold, the levy on fuel exports is based on cracks or margins that refiners earn on overseas shipments.

These margins are primarily a difference between the international oil price realised and the cost. Since the outbreak of the war in Ukraine, energy prices have been quite volatile.