The Government of India increased the windfall tax on while reducing the tax on diesel and , an official notification said, adding that the windfall tax on petroleum crude oil has been hiked to 2,300 ($27.63) a ton from 1,300.

A tax on diesel of 0.5 per litre was eliminated, it said as was a one rupee per litre windfall tax on aviation fuel. India imposed a windfall tax on crude oil producers in July 2022 and extended the levy on exports of gasoline, diesel, and aviation fuel as private refiners wanted to sell fuel overseas to make gains from robust refining margins instead of selling locally. This came days after reported that the central government is planning to bring down ahead of the 2024 Lok Sabha elections that are scheduled to take place next year. The Indian government, nearly two years ago, had decided to decrease petrol and diesel prices by slashing by 8 and 6 respectively. Currently, the international market has witnessed a decline in the crude oil price which will lead to a fall in fuel prices in India. reported that the Union Finance Ministry will likely cut the petrol and diesel prices by 10 soon. In international markets, crude oil prices are being traded at $70 to $80 per barrel. The report stated that a proposal has been sent to the Prime Minister’s Office in favor of cutting fuel prices across the country.