Citing a global increase in crude oil prices in the last fortnight, the Central govt. has readjusted the windfall tax on domestically produced crude oil to Rs 11,000/tonne from the earlier Rs 8,000/tonne as of Sunday(October, 16 2022) along with the new levy increase in diesel export prices to Rs 12 from the earlier Rs 5. 

This move by the Central govt. has resulted in the increase in domestic crude oil prices by 37%. Furthermore, the government. has also announced its decision to reintroduce the cess on Aviation Turbine Fuel exports with a levy of Rs 3.5/litre, at the seventh fortnightly review of the one-off taxes on oil companies like ONGC and Cairn  among others.

The taxes were introduced on July 1, as the government came to the conclusion that the increased crude rates were allowing oil companies to make windfall profits, and that the exchequer must get a share of such profits. Additionally, the move also aims to ease out the supply of domestic oil in the national market,  caused earlier by the excessive focus of private refiners on the highly remunerative  international market.