Shares of oil marketing companies were trading mixed on Tuesday following the government’s decision to increase the windfall tax on domestic crude oil.
Reliance Industries shares declined by over half a percent to touch a low of Rs 2,533.65 on BSE in morning deals.
Bharat Petroleum Corp Ltd recovered from earlier losses to trade marginally up by 0.11 percent at Rs 377.90 per share. Hindustan Petroleum Corp Ltd rallied 1.08 percent to Rs 285.40 per share.
The country’s largest state-run fuel retailer and processor Indian Oil Corporation shares gained 0.86 percent at Rs 94.61 apiece on BSE.
Among oil producers, Oil India Ltd shares gained 0.6 percent at Rs 277.40 per share.
Shares of state owned oil producer ONGC Ltd declined 0.88 percent to Rs 175.40 apiece.
Shares of Vedanta Ltd, which operates oil fields in Rajasthan, rose by 0.69 percent to Rs 278 apiece.
The Central government has notified an increase in special additional excise duty (SAED) on crude petroleum to Rs 4,200 per tonne from Rs 1,600 per tonne earlier with effect from August 1.
The SAED on diesel has been raised to Re 1 from nil earlier while the tax on petrol and jet fuel has been kept unchanged at nil.
India levied the windfall profit tax on petroleum products in July last year to tax supernormal profits earned by fuel processors and retailers following a spike in international oil prices due to the Russia-Ukraine war.
As the international rates declined, the government removed the windfall tax on fuel to nil in May this year.
The government re-imposed the special duty on fuel on July 15 as the crude oil prices rebounded from $75 per barrel to $85 per barrel levels.
