Reliance Industries Ltd (RIL) shares tumbled near 9% on Friday after the government slapped tariffs on the export of petrol, diesel, and jet fuel (ATF) carried outside by Indian companies. The government levied a tax of Rs 6 per litre on petrol and aviation turbine fuel exports, and Rs 13 per litre on diesel exports. The move is intended to address domestic market demand.
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The export levies came after oil refiners, notably those in the private sector, made enormous profits from exporting fuel to markets such as Europe and the United States amid a boom in worldwide oil prices.
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It also imposed tariffs on crude oil firms’ windfall earnings. The government levied a Rs 23,230 per barrel cess on domestic crude production. The measure is intended to reduce the windfall profits coming to producers as a result of high worldwide oil prices.
The taxation of windfall gains by crude producers reduced ONGC’s stock price by 12%. The ONGC shares plummeted 12.28% intraday to Rs 132.85 from the previous closing of Rs 151.45 on the BSE.
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Meanwhile, RIL stock has dropped following three days of gains. RIL shares fell 8.83% intraday to Rs 2,365 from the previous close of Rs 2,594.05 on the BSE.
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RIL’s share price has climbed 17.22% in a year and 3.83% since the beginning of this year. On the BSE, 5.83 lakh shares of the company changed hands, resulting in a turnover of Rs 142.98 crore approx.
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The conglomerate’s market capitalization has dropped to Rs 16.60 lakh billion. On April 29, 2022, the share reached a 52-week high of Rs 2,855 and a 52-week low of Rs 2, 016 on July 28, 2021.