ONGC, Oil India, MRPL and Chennai Petro slip as government increases windfall tax on domestically produced crude
Windfall tax on crude: The petroleum ministry on Wednesday raised the windfall tax on domestically produced crude to Rs 6,800 per tonne from Rs 4,900 per tonne. However, the windfall tax remains zero for diesel and aviation turbine fuel (ATF). It is the fifth raise in windfall tax by the government since February.
Windfall tax on crude: Oil stocks such as ONGC, RIL, Oil India, MRPL, and Chennai Petro started their trading session on the BSE on Thursday (April 4, 2024) in negative territory, a day after the petroleum ministry raised the windfall tax on domestically produced crude to Rs 6,800 per tonne from Rs 4,900 per tonne.
However, the windfall tax remains zero on diesel and aviation turbine fuel (ATF).
It is the fifth raise in windfall tax by the government since February.
Before the current raise, the ministry had raised the windfall tax on crude to Rs 4,900 per tonne from Rs 4,600.
Here's how oil stocks are reacting to increased windfall tax rates:
ONGC
The Oil and Natural Gas Corporation stock slipped by 3.61 per cent to the day's low of Rs 265.40 in morning deals, having closed at Rs 275.35 a day before.
The stock that opened at Rs 277.05 on Thursday closed trading lower by 2.31 per cent, or Rs 6.35, at Rs 269.
RIL
Reliance Industries Limited had a slight fall of 1.42 per cent to the low of Rs 2900.50 after closing at Rs 2942.40 a day ago.
The stock that began its journey on Thursday at Rs 2,958.55 ended the session lower by 0.54 per cent, or Rs 15.95 at Rs 2,926.45.
Oil India
The stock of the oil firm slipped by 3.54 per cent to the day's low of Rs 613.00 after closing at Rs 635.50 in the previous session.
The stock that started the session on Thursday at Rs 639.85 closed trading lower by 1.89 per cent, or Rs 12.00 at Rs 623.50.
Mangalore Refinery & Petrochemical Ltd
MRPL slipped 2.27 per cent in the morning session to a low of Rs 232.35 after closing the previous session at Rs 237.75.
The stock that began its journey at Rs 239.45 on Thursday ended the trading session lower by 1.16 per cent, or Rs 2.75, at Rs 235.00.
Chennai Petroleum Corporation Ltd
Chennai Petro slipped by one per cent to the day's low of Rs 934.00, having closed at Rs 951.05 a day ago.
The stock of the petroleum company that started the day at Rs 964.95 ended it down by 1.27 per cent, or Rs 12.05, at Rs 939.00.
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