Indian oil stocks decline after New Delhi announces a hike in fuel export taxes

• Indian oil shares fall after New Delhi announces a rise in the export tax on fuel.
•  Shares of Reliance Industries, owned by Asia’s richest man Mukesh Ambani, fell as high as 8.7% in response to the news.
•  Oil & Natural Gas Corporation, another major refiner, plunged as much as 10%.

Reliance Industries, one of the country’s largest refiners, saw a drop in its stock price as a result of India’s decision to boost taxes on fuel exports to protect domestic supply.

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Friday, New Delhi stated that it would increase export duties on diesel, gasoline, and aviation fuel.

The administration intends to safeguard domestic gasoline supplies in the face of skyrocketing global energy prices as a result of the conflict in Ukraine and disrupted supply networks. The country’s trade ministry issued a supplementary notice mandating that 50 percent of petrol and 30 percent of diesel be retained for the domestic market.

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The government recently increased tariffs on gold imports in an effort to stem the decline in the rupee’s value versus the dollar, which has fallen more than 6 percent this year.

The shares of Reliance Industries, owned by Asia’s richest man Mukesh Ambani, fell as high as 8.7 percent in response to the news of the fuel export tariff increase, the largest decrease since December. In early trade, shares of Oil & Natural Gas Corporation, another major refiner, plunged as much as 10%, while the broader BSE Sensex fell as much as 1.5%.