India Hikes Taxes On Fuel Exports, Slashes Windfall Tax On Local Crude

India on Thursday raised fuel export taxes despite only cutting them a little over two weeks ago, and slashed a windfall tax on locally produced crude oil, according to a government notification.

India increased export taxes on jet fuel to 2 rupees per litre from zero and diesel to 7 rupees per litre from 5 rupees, the finance ministry notification said.

Tax on domestically produced crude oil was cut to 13,000 rupees per tonne from 17,750 rupees per tonne, it added. The latest changes will be effective from Aug. 19.

Last week a top government source told Reuters that India, the world's third largest oil importer, would review the windfall tax on petroleum products.

The country had reduced fuel export taxes and raised the windfall tax earlier this month.