Taking a big decision on petrol and diesel, the Central Government decided to reduce Exide duty by Rs 10 per liter. After this decision of the government, today i.e. on Friday, the shares of oil selling companies like Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation (IOC) rose by up to 4%. This rise came when the Government of India reduced the special additional tax on petrol to Rs 3 per liter and completely abolished it on diesel.
This development has come to light amid huge fluctuations in domestic fuel prices. Due to the ongoing war in the Middle East, there has been a sharp increase in the prices of crude oil across the world, due to which the prices remain above the critical level of $ 100 per barrel.
Naira had increased the rates
The government’s move comes just a day after Nayara Energy, India’s largest private fuel seller, increased petrol prices by Rs 5 per liter and diesel by Rs 3 per litre. Nayara Energy, which is majority-owned by Russian company Rosneft, operates more than 7,000 petrol pumps across India. Dealers expressed concern over this increase in prices and warned that it could have a negative impact on fuel demand and there could be protests against it. Some dealers also said that fuel supply has also been reduced in recent times.
The rise in oil prices slowed down a bit on Friday morning. It is expected that this softening of oil prices will prove to be a good sign for the OMC shares which are already under pressure. Brent crude futures fell more than 1% to $ 106.7 per barrel. At the same time, WTI crude futures also fell by more than 1% to $ 93 per barrel.
Also read- Government again imposed windfall tax on diesel and ATF exports, profits will be affected!