The Centre on Friday reduced the windfall tax on domestically-produced crude oil and aviation fuel, ANI reported. On July 19, the Union finance ministry had levied the charges.

A windfall tax is a one-time fee imposed on a company whose profits have surged extraordinarily due to favourable market conditions.

According to a government notification, the tax on domestically-produced crude oil was reduced to Rs 1,700 per tonne from Rs 4,900 per tonne.

The tax on aviation fuel was cut down to Rs 1.5 per litre from Rs 5 per litre. The revised tax rates are effective from Friday.

The changes will help state-run Oil and Natural Gas Corporation and Vedanta Limited as well as top fuel exporter Reliance Industries.

The reduction in tax rate comes amid a 14% decline in global crude oil prices since November, reported PTI.

On Thursday, the price of Brent crude stood at $81.21 (Rs 6,600.12) after falling by 1.8%, according to Reuters. Brent is a global price benchmark for crude oils from the Atlantic basin.