Oil companies largely trade in green despite govt's windfall gains tax hike

The upstream oil companies including ONGC, Reliance Industries, Oil India are trading higher in Tuesday's trade (April 16) even as the centre hiked windfall gains tax on crude to Rs 9600 per metric ton from Rs 6800 with effect from today.

The Indian government has raised its windfall tax on petroleum crude to 9,600 rupees ($114.99) a metric ton from 6,800 rupees with effect from April 16, the government said on Monday.

In the early trade at around 9:27 am, Chennai Petroleum traded higher by 0.44 per cent, MRPL with gains of 1.1 per cent, RIL up by 0.05 per cent, ONGC traded higher by 1.16 per cent, while Oil India traded with a cut of 0.25 per cent.

This step by the centre has been taken as global oil prices continue to rise amid concerns regarding potential supply disruptions. The windfall tax on local crude oil production companies is levied when the global market prices scale over $75 per barrel.

In today's trade, oil prices rose amid escalating Middle East tensions as Israel's military chief said his country would respond to Iran's weekend missile and drone attack amid calls for restraint by allies. Brent futures for June delivery rose 46 cents, or 0.5%, to $90.56 a barrel by 0005 GMT. U.S. crude futures for May delivery rose 43 cents, or 0.5%, to $85.84 a barrel.