The Centre, on September 1 , cut the special additional excise duty (SAED) on crude petroleum to Rs 6,700 per tonne, effective September 2.
Earlier, in the previous fortnightly review on August 14, the government had set the windfall tax on domestically-produced crude oil at Rs 7,100 per tonne.
The ministry further noted that the duty on petroleum exports will continue at nil.
The Centre rolled out windfall profit taxes on crude oil producers last July. It later extended the tax imposition on gasoline, diesel and aviation fuel exports following demands of private refiners to bank of the solid refining margins in overseas markets, instead of selling in the sector.