Oil stocks trade mixed even as Centre scraps windfall gains tax on diesel, petrol exports; Oil India falls over 2%

Upstream oil companies remained in focus in Monday's session (December 2) as the centre decides to scrap windfall gains tax on exports of petrol and diesel.

At the last count, shares of ONGC were weak by a tad-down 0.3 per cent at Rs 255.9, while that of Oil India fell up to 2 per cent to the day's low price of Rs 478.75 per share. At the time of writing the copy, the scrip traded weak by over 1 per cent at Rs 485.15 apiece on the BSE.

Meanwhile, Reliance Industries traded up by 0.7 per cent at Rs 1,301.2 per share on the BSE.

The traction in these stock comes as the Government on Monday has done away with the windfall gains tax on Aviation Turbine Fuel (ATF), crude products, petrol and diesel products, after a series of deliberation.

The losses in the pack is seen even as the new directive effective immediately will bring a sigh of relief for oil refiners.

"Notification nos 29/2024 and 30/2024 dated 2.12.2024 issued with immediate effect for withdrawal of windfall tax i.e special additional excise duty (SAED) levied on production of crude and export of ATF, SAED and Road and Infrastructure Cess (RIC) on export of petrol and diesel. Notification laid in the parliament," said Finance Ministry.

Windfall gains tax are intended to tax profit of these companies derived as a result of an external event. 

Earlier analysts opined that this a waiver will not impact the government's revenue as well as will not have a significant impact on the tax burden of upstream oil companies.