India Cuts Windfall Tax On Diesel, Aviation Fuel Exports

India cut a windfall tax on oil producers and refiners and exempted gasoline from an export levy less than a month after it imposed the two charges.

The changes will help companies such as Reliance Industries, Oil and Natural Gas Corp and Oil India Ltd.

The government said it had scrapped an export tax of 6 rupees a liter on gasoline.

Windfall tax on diesel and aviation-fuel exports would be cut by 2 rupees a litre, the government said in its statement, adding that tax on domestically produced crude oil would be cut to 17,000 rupees a tonne from 23,250 rupees.

All the changes took effect on July 20.

On July 1, India imposed the windfall tax on oil producers and refiners that had boosted product exports to gain from higher overseas margins. It also applied the export levy at that time.

(Reporting by Aftab Ahmed in New Delhi and Maria Ponnezhath in Bengaluru; Editing by Muralikumar Anantharaman and Bradley Perrett)