Kamal Ghorui
Shares of Reliance Industries Ltd (RIL) fell more than 4% on Friday after the government reintroduced windfall taxes on diesel and aviation turbine fuel (ATF) exports, eroding over Rs 82,000 crore from the company’s market capitalisation in intra-day trade.At 3:30 pm, shares of Reliance Industries Ltd were trading at Rs 1,350.80, down Rs 62.30 or 4.41% for the day, reflecting sharp selling pressure in the stock.The decline in the Mukesh Ambani-led company’s stock also dragged benchmark indices lower, with the Sensex and Nifty slipping nearly 2% during the session.According to an order issued on Thursday, the government reversed its earlier decision to scrap such levies, as it looks to recalibrate revenue from the energy sector amid heightened volatility in global oil markets.Finance minister Nirmala Sitharaman said the revised duties –Rs 21.5 per litre on diesel exports and Rs 29.5 per litre on ATF –are aimed at ensuring adequate domestic availability of these fuels.The move was accompanied by a reduction in excise duty on fuels meant for domestic consumption. The government cut the special additional excise duty on petrol to Rs 3 per litre and scrapped it on diesel.The policy shift came a day after Nayara Energy, India’s largest private fuel retailer, increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre. The company, majority-owned by Russia’s Rosneft, operates over 7,000 fuel outlets across the country.Dealers have flagged concerns over the price hike, warning of potential impact on demand and indicating possible protests. Some also said fuel supplies had been curtailed in recent days.Reliance Industries, India’s most valuable company with a market capitalisation of over Rs 18 lakh crore, is a major exporter of diesel and ATF. Its twin refineries at Jamnagar produce nearly 5 million tonnes of ATF, a significant portion of which is exported, accounting for about one-fourth of India’s total ATF output.Separately, the company on Thursday dismissed media reports claiming it had purchased Iranian crude oil. “These claims are entirely baseless, factually incorrect, and misleading. We urge media outlets to verify facts thoroughly before publication and to refrain from disseminating unsubstantiated reports that can misinform stakeholders and the public,” it said in a statement.RIL shares have declined nearly 4% over the past five trading sessions and about 3% over the last month, adding to pressure on the broader market.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
