Oil & Gas Stocks Cheer Centre's Reduction In Windfall Tax & Excise Duty On Fuel Exports; RIL Gains Over 4%

The Centre reportedly has announced a cut in the windfall tax and at the same time has lowered levy on fuel exports. The move has been taken after the crude oil price has softened in the international markets.

On domestically produced crude, the centre has lowered windfall tax to Rs. 17,000 per tonne. Also at the same time has lowered export levy on diesel by Rs 2 and aviation-fuel exports would be cut by 2 rupees a litre.

On the move, oil refiners have been buzzing in trade today. Heavyweight stock Reliance Industries gained over 4% intra-day to day's high price of Rs. 2542.5 per share on the NSE. Also, the move supported the headline indices with Nifty hitting 16,560 levels.

Other stocks from the oil and gas space which were buzzing in trade include Chennai Petroleum reaching day high price of Rs 296.65, Oil India (203) , ONGC (136.6) , MRPL (Rs. 76.3), GAIL (Rs. 147.4).

There has been logged a correction of up to 45% in some of these oil and gas counters after the government had imposed a windfall tax and additional excise duty on diesel, petrol and ATF exports.