Energy stocks trade mixed as government hikes windfall profit tax on export of diesel, slashes on local crude - details

Energy stocks in focus, Windfall tax: Shares of energy companies – Oil and Natural Gas Corporation (ONGC), Oil India, Mangalore Refinery & Petrochemicals (MRPL), and Chennai Petroleum Corporation – were trading mixed on the bourses on Friday as the government hiked windfall profit tax on diesel, jet fuel export and slashed tax on domestic crude oil.

The government on Thursday hiked the windfall profit tax on the export of diesel to Rs 7 per litre and brought back a tax on jet fuel exports but slashed the levy on domestically produced crude oil in line with softening rates, according to a news agency PTI report.

While Chennai Petro share price surged over 5.5 per cent to Rs 299.8 apiece, ONGC share price gained over 2 per cent to Rs 138.5. Likewise, Oil India share price advanced around 1.5 per cent to Rs 19.2 per share on the BSE and NSE intraday.

On the contrary, shares of MRPL slumped by over 2 per cent to Rs 73 per share on the BSE and NSE intraday today.

Earlier this month, the government had scrapped the windfall profit tax on ATF (Aviation Turbine Fuel) exports. Alongside, the tax on domestically produced crude oil has been cut to Rs 13,000 per tonne from Rs 17,750 per tonne.

On Thursday, Brent crude futures fell 36 cents, or 0.4 per cent, to $96.23 a barrel by 0309 GMT after settling 3.1 per cent higher. US West Texas Intermediate crude was at $90.29 a barrel, down 21 cents, or 0.2 per cent, following a 2.7 per cent increase in the previous session.