India scrapped a a windfall tax levied on oil companies and kept petrol out of an export levy less than a month after it introduced the two regulations.
The government said it scrapped an export tax of 6 rupees, or 8 US cents, a litre on petrol.
Windfall tax on diesel and aviation-fuel exports would be cut by 2 rupees a litre, the government said in its statement.
Tax on domestically produced crude oil would be cut to 17,000 rupees a tonne from 23,250 rupees, it added.
All changes took effect on July 20 and will help companies such as Reliance Industries, Oil and Natural Gas Corporation and Oil India.
On July 1, India imposed the windfall tax on oil producers and refiners that had boosted product exports to gain from higher overseas margins. It also applied the export levy at that time.
- Reuters with additional editing by Jim Pollard
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