The government imposed taxes on export of petrol, diesel and jet fuel ATF that are shipped overseas by Indian firms has led to a 7 per cent drop in shares of Reliance Industries Ltd RIL. The government levied a tax of 6 per litre on exports of petrol and aviation turbine fuel and 13 per litre on diesel exports. The move is intended to meet the demand of the domestic market.
Oil refiners, particularly from the private sector, attracted huge profits from exporting fuel to markets such as Europe and the US due to a surge in international oil prices.
The windfall gains made by crude oil producers were set to be subject to taxes on them. The government imposed additional cess of Rs 23,230 per barrel on domestic crude production. Windfall gains accruing to producers due to high international oil prices are being taken away by the move.
The shares of ONGC fell by 12 per cent after the windfall gains by crude producers were lowered by the tax on windfall gains. The ONGC stock fell 12.28 per cent to Rs 132.85 against the previous close of Rs 151.45 on the BSE.
The RIL stock has fallen after three days of continuous gain.
RIL shares fell 8.66 per cent intraday to Rs 2,369. The previous close of Rs 2,594 was 45 against it. 05 on the BSE. Reliance Industries is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The RIL share has gained 17.22 per cent in a single year, and has risen 3.83 per cent since the beginning of the year. The firm's total changed hands with 5.83 lakh shares of the firm, which was a turnover of Rs 142.98 crore on the BSE.
The market cap of the conglomerate fell to 16.60 lakh crore. The share hit a 52 week high of Rs 2,855 on April 29, 2022 and a 52 week low of Rs 2, 016 on July 28, 2021.