Yesterday, most of the Oil Explorer and Producing Companies Like #Reliance, #Ongc, #MRPL were down by 10%.
There were multiple reasons for this. So let's discuss each reason one by one.
Before going ahead, Like and Retweet this tweet for wider reach.
There were multiple reasons for this. So let's discuss each reason one by one.
Before going ahead, Like and Retweet this tweet for wider reach.
First Reason:
#Government imposed taxes on the export of petrol, diesel, and jet fuel shipped overseas by Indian firms.
A tax of ₹6/L on exports of petrol and aviation turbine fuel and ₹13/L on exports of diesel will be levied.
#Government imposed taxes on the export of petrol, diesel, and jet fuel shipped overseas by Indian firms.
A tax of ₹6/L on exports of petrol and aviation turbine fuel and ₹13/L on exports of diesel will be levied.
The step is aimed at meeting the demand of the domestic market.
The taxes on exports come after oil refiners, particularly from the private sector, attracted huge gains from exporting fuel to markets such as Europe and the US amid a surge in international oil prices.
The taxes on exports come after oil refiners, particularly from the private sector, attracted huge gains from exporting fuel to markets such as Europe and the US amid a surge in international oil prices.
Second Reason is Windfall Tax.
Government announced taxes on windfall gains made by crude oil producers. The government imposed an additional cess of ₹23,230 per barrel on domestic crude production.
Government announced taxes on windfall gains made by crude oil producers. The government imposed an additional cess of ₹23,230 per barrel on domestic crude production.
The move is aimed at taking away windfall gains accruing to producers from high international oil prices.
What is Windfall tax?
A windfall tax is a tax levied by governments against certain industries, mostly commodities, when economic conditions allow those industries to experience above-average profits.
A windfall tax is a tax levied by governments against certain industries, mostly commodities, when economic conditions allow those industries to experience above-average profits.
Recently, we have seen that crude oil price have moved up and major beneficiaries of this would be the Oil Producing Companies.
So these companies would have enjoyed a supernormal profit in the last few months, which has led the Government to levy Windfall Tax on them.
So these companies would have enjoyed a supernormal profit in the last few months, which has led the Government to levy Windfall Tax on them.
That's all about the updates and reasons why these Oil Producing Companies were down last day.
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