Oil stocks in focus: HPCL, BPCL, ONGC, others gain after govt cuts windfall tax on domestic crude

Oil and gas stocks rose in a weak market on Monday after the government slashed windfall tax on domestic crude oil and exports of Aviation Turbine Fuel (ATF).  

Reacting to the development, major oil and gas stocks gained between half per cent to three per cent in early trade. Hindustan Petroleum Corporation Ltd (HPCL) share price rose three per cent in early trade to Rs 236.40 a share on the BSE. Similarly, Oil and Natural Gas Corporation Ltd jumped around two per cent to trade at 134.25 a share on the BSE. BPCL and Reliance Industries gained around half per cent each to Rs 324.45 and 2512.95 respectively. Meanwhile, Oil India declined almost one per cent to trade at 186.05 per share.  

Earlier, the government on Friday cut windfall tax levied on locally- produced crude oil from Rs 13,300 per tonne to Rs 10,500 per tonne. 
 
The government also cut tax on Aviation Turbine Fuel (ATF) exports to Rs 8.50 per litre from Rs 9 per litre, according to a gazette notification. 
 
Similarly, cess on export of diesel was slashed to Rs 6.50 per litre from Rs 13.50 per litre. 
 
The decision came after the fifth fortnightly review of windfall taxes conducted by the Centre. 
 
The notification came into force from September 17.