The government reduced the windfall tax on domestically produced crude oil to ₹10,500 from ₹13,300 a tonne, according to a Ministry of Finance circular.
It also reduced the tax on the export of diesel to ₹8.5 per litre from ₹13.5 and on aviation turbine fuel (ATF) from ₹9 per litre to ₹5.
The new rates will be effective from Saturday.