ITC is also the subject of a buy call from Sharekhan with a target price of Rs 290. ITC is presently

Following the government's imposition of an export tax on gasoline, diesel, and aviation turbine fuel (ATF), as well as a windfall tax on locally produced crude oil, shares of oil refining and marketing companies, fell on Friday. A cess of Rs 23,250 per barrel has been levied by the government on domestic crude oil output.

The government's move caused petroleum stock prices to drop precipitously. During trading, shares of oil-to-telecom major Reliance Industries Ltd. (RIL) fell by roughly 9% to Rs 2,369.45 before beginning to rise again. While ONGC's shares fell 10% in early Friday trading.

Shares of Mangalore Refinery were trading a little lower while shares of Chennai Petrochem fell 13% to Rs 272.70, although Bharat Petroleum defied the trend and increased somewhat.

Smaller companies, like Omnipotent Industries, had a 15% decline. Summit Infra and Continental Petroleums both experienced up to 4% losses. After the government imposed taxes on the windfall profits produced by domestic refineries, reliance experienced a dramatic decline. While the commodity cycle is also turning around, Reliance's refinery industry is currently experiencing a lull. However, other verticals offer tremendous development potential, according to Santosh Meena, head of research at Swastika Investment. The Jamnagar refinery of Mukesh Ambani-led RIL exports fuel to several nations throughout the world.

The government has altered its export regulations for gasoline and diesel. To cover the cost of shipping, Indian exporters must sell 50% of the gasoline they ship on the local market.

On their exports, the government has imposed cesses amounting to Rs. 6 per liter for gasoline and Rs. 13 per liter for diesel. Additionally, it has imposed an extra tax of Rs 23,250 per tonne on locally produced crude oil. According to a notice from the finance ministry, businesses with a production of fewer than two million barrels are free from this duty.

The export tax was implemented as a result of oil refineries, particularly those in the private sector, making significant profits by exporting fuel to countries like the US and Europe. The tariff on domestic crude oil production comes after local producers profited handsomely from the rise in global oil prices.

The government made it clear that the action would guarantee product availability rather than raise petroleum product prices in India.

Since May 21, when the government announced a reduction in excise duty on the fuel of 8 rupees per liter and on diesel of 6 rupees per liter, domestic gasoline and diesel prices have remained stable. The government's taxes, which were revealed today, have little effect on domestic fuel costs, therefore they are likely to stay low.

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