The government has announced a reduction in the windfall tax on domestically produced crude oil, lowering it from Rs 4,600 per tonne to Rs 2,100 per tonne, effective August 17. This tax, officially known as the Special Additional Excise Duty (SAED), is applied to oil companies that make substantial profits from high crude oil prices. In addition, the SAED on the export of diesel, petrol, and jet fuel (ATF) remains unchanged at zero, meaning there is no additional tax on these exports. This policy is part of a broader strategy to manage the impact of volatile global oil prices on domestic markets. India introduced windfall profit taxes on July 1, 2022, aligning with a trend among various nations that impose taxes on extraordinary profits of energy companies during periods of high oil prices. The government reviews these tax rates every fortnight, adjusting them based on the average oil prices from the previous two weeks to reflect ongoing market conditions and ensure the tax rate remains aligned with current economic realities.