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.
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.
The government marginally hiked duty on ATF exports to ₹11/litre from ₹10.5/litre for the fortnight. The special additional excise duty (SAED) rate also increased on diesel exports. The SAED, along with road and infrastructure cess on export of diesel surged from ₹8.5 per litre to ₹11.5 per litre.