ONGC, Oil India, BPCL, IOCL stocks slashes post windfall tax cut

Oil shares were trading down after the government eliminated the windfall tax on crude petroleum. In early trading on the National Stock Exchange, Oil India shares dropped 2.1% to Rs 602.2 apiece, IOCL shares fell 0.1% to Rs 170, ONGC stock declined by 0.4% to Rs 293.2, and BPCL shares also decreased by 0.1% to Rs 338.1 apiece.

On Tuesday, the government slashed the windfall tax on domestically produced crude oil to 'nil' per tonne, effective September 18.

The tax is levied as Special Additional Excise Duty (SAED) and is notified fortnightly based on the average oil prices for the previous two weeks.

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The SAED on the petrol, diesel, and jet fuel export, or ATF, has been retained at 'nil'. An official notification said the new rates are effective September 18.

A notification showed that the government has cut the windfall tax on petroleum crude to zero from Rs 1,850 per metric tonne, effective September 18.

The govt reviews the windfall tax every fortnight, and the cut comes after a decline in crude prices. Brent crude prices have fallen below $75 a barrel from over $92 a barrel in April.

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