Reliance Industries, Other Energy Stocks Tumble On Petroleum Export Duty
Shares of India's oil and energy firms slumped after the government raised taxes on the export of petrol and diesel.
Shares of India's oil and energy firms slumped after the petroleum export duty hike.
The government has raised excise duty on export of crude and petroleum products, levying a special additional excise duty of Rs 5 a litre on petrol and Rs 12 a litre on diesel, according to its statement.
Special additional excise duty of Rs 23,250 a tonne of petroleum crude and Rs 6 a litre of aviation turbine fuel was also levied.
Shares of Reliance Industries Ltd. plunged as much as 8.9% intraday, the most in 20 months, on Friday.
In a clarification issued by Director General of Foreign Trade, the excise duty imposed on petrol and diesel will not be applicable on produce coming from 100% export-oriented units or special economic zones.
That means impact on oil producers will be limited or mixed. The units producing petrol and diesel within SEZs will not be subject to special additional excise duty. The output from non-SEZ areas will have to meet domestic commitments and will be subjected to special additional excise duty.
Other oil explorers, too, tumbled. Oil India Ltd. was down 16.5% intraday, ONGC Ltd. fell 14.2%, Mangalore Refinery & Petrochemicals Ltd. 10%, Hindustan Oil Exploration Ltd. 7.4%, and Chennai Petroleum Corp. Ltd. 13.1%.
