The Indian government has increased windfall tax on petroleum crude to 10,000 rupees ($120.36) per ton from 6,700 rupees, effective Sept. 16, according to a government notification on Friday.

The government also cut windfall tax on aviation turbine fuel to 3.50 rupees per litre from 4 rupees.

The levy on diesel has been cut to 5.50 rupees per litre from 6 rupees, the notification said.

On Sept. 1, the government cut windfall tax on petroleum crude to 6,700 rupees per ton from 7,100 rupees.

India imposed the windfall tax on crude oil producers in July last year 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.

($1 = 83.0830 Indian rupees)

(Reporting by Shivani Tanna and Nikunj Ohri, Editing by Louise Heavens and Devika Syamnath)