Reliance Industries shares plunged over 4% on Friday, erasing more than Rs 82,000 crore in market value following the government’s reinstatement of windfall taxes on diesel and ATF exports. The decision, announced by Finance Minister Nirmala Sitharaman, aims to bolster domestic fuel supply amid fluctuating global oil prices. The move reverses an earlier policy to scrap such taxes, as authorities seek to stabilize revenue from the energy sector. The government imposed additional duties of Rs 21.5 per litre on diesel exports and Rs 29.5 per litre on ATF exports. This comes alongside a reduction in excise duties on petrol and diesel for domestic use, with the special additional excise duty on petrol cut to Rs 3 per litre and eliminated for diesel. Sitharaman emphasized that the higher export duties would ensure adequate fuel availability for Indian consumers. The decision follows a day of rising fuel prices, as India’s largest private fuel retailer, Nayara Energy, increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre. Owned largely by Russia’s Rosneft, Nayara operates over 7,000 fuel stations nationwide. Dealers expressed concerns over the price hike, warning of potential demand drops and possible protests. Some also noted recent fuel supply shortages, exacerbating the situation. Reliance Industries, India’s most valuable company with a market cap exceeding Rs 18 lakh crore, is a major exporter of ATF and diesel. Its two refineries in Jamnagar produce nearly 5 million tonnes of air turbine fuel annually, with a significant portion exported. The company accounts for one-fourth of India’s total ATF production. Reliance rejected media reports alleging it had purchased Iranian crude oil, calling the claims “baseless and misleading.#relance_industries #jamnagar #nayara_energy #rosneft #nirmala_sitharaman
Narayana Energy Raises Petrol and Diesel Prices Amid Global Oil Surge India’s largest private fuel retailer, Narayana Energy, has increased petrol and diesel prices by Rs 5 per litre and Rs 3 per litre respectively, passing on part of the recent spike in global oil prices driven by tensions in the Middle East. The decision comes as international crude prices have surged nearly 50 per cent since February 28, when the United States and Israel launched military strikes against Iran, triggering retaliatory actions from Tehran. Retail fuel prices in India have remained frozen since April 2022, with state-owned oil marketing companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) absorbing losses during periods of high crude prices and profiting when prices are low. However, private retailers such as Narayana Energy, which operates 6,967 of India’s 102,075 petrol pumps, have faced mounting financial pressure. Unlike state-owned firms, private companies receive no government compensation to offset losses from holding back price increases. Nayara Energy, majority-owned by Russia’s Rosneft, raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre, though the effective increase varies by state due to local taxes like VAT. In some regions, the rise in petrol prices reached as high as Rs 5.30 per litre. The company’s spokesperson did not comment on the price hike, but sources noted that private retailers have little choice but to raise prices to mitigate losses. In contrast, state-owned fuel retailers continue to keep prices unchanged, controlling about 90 per cent of the market.#indian_oil_corporation #bharat_petroleum_corporation #hindustan_petroleum_corporation #narayana_energy #rosneft
