The revised tax regime took effect for the fortnight beginning October 31, significantly hiking export taxes on diesel while marginally increasing levies on aviation fuel. In contrast, authorities scrapped the special export duty on petrol entirely. The policy aims to discourage energy firms from redirecting supply overseas to chase elevated foreign profit margins. Ahead of the mandate, shares of IOCL, BPCL, and HPCL closed lower on the BSE.
Key points
Sharper export duties on diesel are expected to pressure refining profit realisations for…: Sharper export duties on diesel are expected to pressure refining profit realisations for major oil producers.
Eliminating the export tax on petrol provides targeted relief to domestic refiners naviga…: Eliminating the export tax on petrol provides targeted relief to domestic refiners navigating geopolitical crude spikes.
Shares of Indian Oil Corporation, BPCL, and HPCL face market scrutiny after ending lower…: Shares of Indian Oil Corporation, BPCL, and HPCL face market scrutiny after ending lower prior to the announcement.
Sources checked by our analysis pipeline: 1
Tax twist for OMC stocks: Shares of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) will remain in focus on Monday following the central government’s latest decision on fuel taxation.
The central government, on Saturday, October 31, raised windfall gains tax on export of diesel and aviation turbine fuel (ATF) and slashed the levy to zero on petrol for the fortnight beginning October 31.
BPCL, HPCL, IOCL share price in focus
IOCL share price closed 0.12% lower at ₹130 per share on BSE with a market capitalisation of ₹1,83,576.10 crore on Friday, October 30. Higher diesel export duty can put pressure on export realisations from refining operations, whereas a cut on petrol export duty would bring some relief.
BPCL stock closed 1.47% lower at ₹284.30 per share on BSE with an Mcap of ₹1,23,342.68 crore on Friday. HPCL share price ended 0.72% lower at ₹339.50 per share on BSE with an MCap of ₹72,239.57 crore.
Hike in windfall on diesel, ATF shipments
The government marginally hiked duty on ATF exports to ₹11/litre…
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