On Friday, the government imposed an export tax on gasoline, diesel and jet fuel shipped overseas by such companies.
and a windfall profits tax on crude oil produced locally by companies such as ONGC and Ltd.
All sectors on the BSE fell 8.65% to Rs 2,369.45.
That was the biggest drag on Sensex’s morning trade.
ONGC shares fell 11 per cent to Rs 134.60 per share and Vedanta fell 7.55 per cent to a 52-week low of Rs 206.10 on the BSE.
The BSE benchmark Sensex was down 551.93 points at 52,467.01 in early trade.
The Ministry of Finance has informed that the government will impose a tax of Rs 6 per litre on exports of petrol and ATF and Rs 13 per litre on exports of diesel.
In addition, it imposed an additional tax of Rs 23,250 per tonne on domestically produced crude oil.
“Reliance saw a sharp decline after the government slapped a tax on domestic refinery windfall profits. Earlier, Reliance went all out, but now its refining operations have been disrupted as the commodity cycle is also reversing, but other verticals have been strong growth potential,” said Santosh Meena, head of research at Swastika Investmart.
The levy on crude oil alone will be slated to be $29 a year on the 29th after record gains from state-owned Oil and Gas Corporation (ONGC) and Oil India Ltd (OIL), as well as private sector Kane Oil and Gas Corp’s Vedanta Ltd. The government brought in Rs 67,425 crore. The domestic production of crude oil is 1 million tons.
The export tax was imposed after refiners, particularly Reliance Industries and Rosneft-backed Nayala Energy, took a toll on fuel exports to deficit regions such as Europe and the United States after Russia invaded Ukraine.