Reliance Industries share falls nearly 9% as govt levies export duty on fuel
- RIL shares fell 8.83% intraday to Rs 2,365 from the previous close of Rs 2,594.05
- The government levied a tax of Rs 6 per litre on petrol and Rs 13 per litre on diesel exports
- It also levied a Rs 23,230 per barrel cess on domestic crude production
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.
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.
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.
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.
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.
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.