India Slashes Windfall Tax on Fuel Exports, Reliance Jumps
(Bloomberg) --
India eliminated a levy on gasoline exports and cut windfall taxes on other fuels less than three weeks after they were imposed, driving a rally in the shares of the nation’s No. 1 fuel exporter Reliance Industries Ltd. and top crude explorer Oil & Natural Gas Corp.
New Delhi reduced the windfall tax on diesel and aviation fuel shipments by 2 rupees (3 cents) a liter, and scrapped a 6-rupee-per-liter levy on gasoline exports, according to a government notification. It also exempted overseas shipments from refineries located in export-focused zones, benefiting Reliance.

The tax on domestically produced crude has been lowered by about 27% to 17,000 rupees a ton. Bloomberg News first reported Thursday that the government was considering lowering the taxes.
Mukesh Ambani’s Reliance jumped as much as 4.4%, the most in two months, in early trading in Mumbai. The heavyweight’s stock lifted the benchmark S&P BSE Sensex higher. ONGC gained as much as 6.8%.
India imposed the taxes on July 1, joining a growing number of nations placing windfall levies to tap energy companies’ booming profits. But international fuel prices have cooled since then, eroding profit margins at both oil producers and refiners.
Read more: countries around the world scramble to ease pressure at the pump
International crude prices have slumped since mid-June on concerns about a potential global recession, at one point erasing all the gains that followed Russia’s invasion of Ukraine. Returns from processing gasoline and diesel in Asia have plunged in recent weeks, with industry consultant FGE expecting a further decline in margins this quarter due to increased supplies.
Reliance and Rosneft-backed Nayara Energy Ltd., India’s only privately owned refiners, make up 80% to 85% of India’s overall gasoline and diesel exports, according to FGE.
(Updates with share prices in fourth paragraph)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Commodity Traders Can’t Ignore India’s Growth, Oil Minister Says

Isuzu to Build Car Plant in South Carolina as Trump Tariffs Loom

SoftBank Weighs Debt-Heavy Financing in $500 Billion AI Push

Stocks Climb as Traders Brush Aside Tariff Threats: Markets Wrap

Moove Works to Control Fire Within Complex in Rio de Janeiro

Stocks Slide as Tariff Angst Adds to Price Worries: Markets Wrap

China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions

China Refiners Set to Resell US Oil Cargoes After Tariff Blitz

Shell starts up new facility in UK North Sea, restoring production from the Penguins field
