Government has proposed to put special additional excise duty of Re 1 per litre and road cess of Re 1 per litre on petrol and diesel, in Budget 2019
Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Indian Oil Corporation shares were down 5-6 percent intraday on July 5 after imposition of special additional excise duty on petrol and diesel.
In the Union Budget 2019-2020, the government has proposed to put special additional excise duty of Re 1 per litre and road cess of Re 1 per litre on petrol and diesel.
"The news is negative for oil marketing companies IOCL, BPCL and HPCL," Sharekhan said.
The special additional excise duty will increase government's gross revenue collections from petroleum products, which ultimately helps Centre to keep fiscal deficit in check and fund expenditure.IOC was down 2.87 percent at Rs 152.10, HPCL down 1.14 percent at Rs 285.30 and BPCL fell 2.47 percent to Rs 370.45 on the BSE at 1318 hours IST.