After the government reduced the windfall tax rates to zero on Tuesday, the price of oil and gas indices moved steadily.
The biggest gainers in this industry were Adani Total Gas, Indraprastha Gas, and industry giant Reliance Industries (RIL), whereas the top losers were ONGC, GAIL India, and Indian Oil. Overall, the BSE Oil & Gas index has increased by 147 points, or 0.8%, so far today.
BSE Oil & Gas was trading at 18,438.65 at the time of writing, up 58.39 points or 0.32%. Additionally, the index reached an intraday high of 18,527.28.
Indian Oil was the leading gainer, up 2.03%, followed by ONGC and BPCL, which rose 1.5% and 1.3%, respectively. HPCL and Gujarat Gas both saw increases of 1.2% and 1.1%, respectively. GAIL and Petronet LNG both had gains of about 1%.
Top bears included Adani Total Gas, which dropped by 5%, IGL, and RIL, whose share prices fell by 1% and 0.7%, respectively.
The government eliminated the windfall tax on petrol, diesel, and aviation turbine fuel as of Monday. Previously, the tax on petroleum oil was reduced from $6,400 per tonne from April 19 to $4,100 per tonne starting on May 1.
The fluctuating price of oil is the cause of the NIL windfall tax. The Nifty Oil & Gas index, however, gained just 0.12% to trade at 7,576.80. This index rose beyond 7,600 to reach a day’s high of 7,622.95.
According to a government statement, India reduced this tax on petroleum crude from Rs 4,100 per tonne to nil with effect from May 16.
For gasoline, diesel, and aviation turbine fuel (ATF), the windfall tax remained at zero.
The government reduced the windfall tax on domestically produced crude oil in early May from $6,400 per tonne to $4,100 per tonne.
In the adjustment that came before, the government eliminated the export tariff on fuel and increased the windfall profit tax on locally produced oil from zero to 6,400 per tonne.
Every two weeks, the tax rates are adjusted depending on the two-week average of oil prices.
India implemented the windfall profit tax on July 1, 2022, joining an increasing number of countries that tax energy businesses’ higher-than-average earnings.
