On Thursday, shares of upstream oil firms such as Reliance Industries Ltd (RIL), Oil & Natural Gas Corporation Ltd (ONGC), and Oil India Ltd were trading in the green due to a reduction in the windfall tax payable on domestically produced petroleum as well as exports.
In Thursday’s trading, RIL shares increased more than 1%, while ONGC and Oil India surged more than 3%.
On Wednesday, February 15, the windfall tax on petroleum was decreased from ₹5,050 per tonne to ₹4,350 ($52.60).
The government also reduced the export duty on diesel from 7.50 rupees per litre to 2.50 rupees per litre and the export tax on aviation turbine fuel from 6 rupees per litre to 1.50 rupees per litre, according to the announcement.
ONGC has risen 27.41% since its 52-week low of ₹119.8 on July 6, 2022, as of Thursday. Oil India shares have risen 51.47% since their 52-week low of ₹167.8 on September 28, 2022.