Oil Stocks Plummet After Government Imposes Rs 3/Litre Windfall Tax on Petrol

Oil and gas stocks plummeted on May 18 after the government imposed an additional windfall tax of Rs 3 per litre on petrol, but lowered levies on diesel and ATF.

The Nifty oil and gas index dropped by nearly 1.6% to hit a low of 11,071 in the day, with majority of oil and gas companies trading in the red.

Oil Marketing Companies like Indian Oil, HPCL, and BPCL took the worst hit, while selling pressure was witnessed in ONGC and Oil India as well.

However, shares of Castrol India and Reliance Industries traded marginally up after recovering early losses.