The government has raised the windfall tax on crude oil and reduced the tax on diesel and aviation turbine fuel.
The government has hiked the windfall tax on petroleum crude oil to Rs 2,300 ($27.63) a tonne from Rs 1,300 earlier, according to the official notification.
Upstream oil companies ONGC and Oil India Ltd (OIL) stand to lose as they will not get the full benefit of rising international prices for their crude.
However, the government on the other hand will get more resources to help to keep its fiscal deficit in check.
A tax of Rs 0.5 per litre on diesel and aviation fuel has been scrapped in the review.
The government had first imposed the windfall tax on crude oil in July last year and extended the levy on exports of gasoline, diesel and aviation fuel after private refiners started making gains from robust refining margins in overseas markets, instead of selling in the domestic market.