Energy stocks fall after hike in windfall profit tax on fuel export

MUMBAI: Shares of energy companies fell sharply on Thursday during the early morning trade after the government decided to hike windfall profit tax on export of diesel and jet fuel.

Shares of Chennai Petro, Adani Total Gas, ONGC, Asian Energy and Reliance were trading more than 1.5 per cent to 4 per cent lower during early trade.

While, BSE Energy were down 102.51 points or 1.15 per cent at 8,780.11, and Nifty Energy were down 269.65 points or 0.96 per cent at 27,834.85.

The government has hiked the windfall profit tax on the export of diesel to Rs 13.5 per litre and that on jet fuel exports to Rs 9 per litre.

The levy on domestically-produced crude oil too has been increased by Rs 300 per tonne to Rs 13,300.

The revision comes into effect from September 1.