The government has slashed the windfall tax on crude oil to Rs 4,100 per tonne from Rs 6,400 per tonne, effective from Tuesday, according to a notification. According to a report by Reuters, the Centre has left the windfall tax on petrol, diesel, and aviation turbine fuel at zero.


The tax rates are revised fortnightly based on oil price fluctuations. On April 4, India cut the windfall tax on petroleum crude to zero from Rs 3,500 per tonne previously. The levy on crude was hiked to Rs 6,400 per tonne on April 19.


The government had last July imposed the windfall tax on crude oil producers and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners wanted to make gains from robust refining margins in overseas markets, instead of selling at home.


Meanwhile on Monday, the prices of commercial LPG cylinder has been cut by Rs 171.50 by the oil marketing companies. The price of 19-kilogram commercial LPG cylinder in Delhi is now Rs 1856.50 while there is no change in the prices of domestic cylinders, reports ANI.


The revised prices have been uploaded by the oil marketing companies on their website. The prices of commercial gas cylinders were reduced in the month of April also by Rs 92 while in March, the prices went up by Rs 350.


After the revised prices, the commercial LPG cylinder in Delhi now costs Rs 1,856.50. In Mumbai, the commercial LPG cylinder now costs Rs 1,808.50, while in Kolkata price of one commercial LPG cylinder is now Rs 1,960.50 and in Chennai, it is Rs 2,021.50.