India Acts to Deter Fuel Exports, Puts Windfall Tax on Oil Producers

Environmental News from India:

India introduced export duties on gas oil, gasoline, and jet fuel on Friday to help maintain domestic supplies, while also imposing a windfall tax on oil producers who have benefited from higher global crude oil prices.

The new taxes, announced in government orders, will dent the earnings of refiners like Reliance Industries Ltd (RELI.NS) and Nayara Energy, part-owned by Russian oil major Rosneft, and oil producers Oil and Natural Gas Corp (ONGC.NS), Oil India Ltd, and Vedanta Ltd.

Shares of Reliance fell as much as 8.7% to 2,370.10 rupees, their biggest intra-day percentage drop since November 2020, while Mangalore Refinery and Petrochemicals slumped 10% to 81.55 rupees.

Private refiners Reliance and Nayara have been among India’s biggest buyers this year of discounted Russian supplies and have been reaping major profits by reducing domestic sales and aggressively boosting fuel exports, including to buyers in Europe, which is now boycotting imports of Russian energy. 

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Source: Reuters

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