ONGC and OIL stocks rise despite government increasing windfall tax on crude oil

While shares of ONGC were up 0.25 per cent, the stock of Oil India were higher by 1.04 per cent. The government on Friday hiked special additional excise duty (SAED) on domestically produced crude oil to Rs 10,000 per tonne with effect from September 16.

ONGC said early this month that it would invest Rs 15,000 crore in Petro-additions as part of a financial restructuring exercise. Photo: PTI/Representational

Shares of state-run oil companies ONGC and Oil India (OIL) were rising in morning deals on Monday (September 18) despite the government increasing the windfall tax on domestically produced crude oil on Friday. While shares of ONGC are up 0.25 per cent, the stock of Oil India is up 1.04 per cent.

The government on Friday hiked special additional excise duty (SAED) on domestically produced crude oil to Rs 10,000 per tonne with effect from September 16.

In the last fortnightly review on September 1, the government had set the windfall tax on domestically produced crude oil at Rs 6,700/tonne.

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Apart from that, SAED on diesel will be cut to Rs 5.50/litre from Rs 6/litre currently.

ZeeBiz takes updates you about the performances of the stocks of the state-run oil companies.

ONGC

The share of the largest government oil company started the trading session on Monday on a lower note, rising 0.25 per cent, or Rs 0.45, at Rs 187.10 on BSE.

In its last two trading sessions on Thursday and Friday, the stock hit back-to-back 52-week highs.

The company said early this month that it would invest Rs 15,000 crore in Petro-additions as part of a financial restructuring exercise.

ONGC chairman and CEO, Arun Kumar Singh, recently said that under-investment in the oil and gas sector could hamper India's progress and is also a roadblock to global progress.

Oil India

The stock of the company made a good start to the trading session on Monday, rising 1.04 per cent, or Rs 2.95, at Rs 287.25 on BSE.

The stock reached the day's high of Rs 287.80 before slipping to its current level.

The company's shares traded well in its previous trading session on Friday after the firm reportedly announced that it intended to invest Rs 25,000 crore in renewable energy.

It also said that it wanted to achieve its net zero emissions goal by 2040. The company's shares have been performing well this year, soaring 14.32 per cent in the last six months while skyrocketing 33.56 per cent year-to-date.

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