Latest News | ONGC, Oil India Share Jumps over 5 Pc

New Delhi, Feb 16 (PTI) Shares of ONGC and Oil India jumped on Thursday after the government reduced the levy on domestically-produced crude in line with the softening of international oil prices.

ONGC stock rallied 5.66 per cent to settle at Rs 155.85 apiece on the BSE.

Also Read | Tamil Nadu: Six Fishermen Attacked, Robbed by Unidentified Men in Midsea Near Point Calimere.

Shares of Oil India jumped 5.21 per cent to end at Rs 260.50 each.

Upstream oil companies gained as a result of the slash in windfall tax, Vinod Nair, Head of Research at Geojit Financial Services, said.

Also Read | 7th Pay Commission: Central Government Likely to Hike DA by 4%, Check How Much Dearness Allowance Employees Will Get.

The BSE benchmark ended 44.42 points or 0.07 per cent higher at 61,319.51.

The government has cut windfall profit tax on export of diesel and ATF to their lowest while also reducing the levy on domestically-produced crude in line with the softening of international oil prices, according to an official order.

The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been cut to Rs 4,350 per tonne from Rs 5,050 per tonne, the order dated February 15 said.

Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF).

The government has also cut the tax on export of diesel to Rs 2.5 per litre from Rs 7.5, and the same on overseas shipments of ATF to Rs 1.50 a litre from Rs 6 a litre.

The new tax rates come into effect from February 16.

The reduction follows an increase in the levy effected earlier this month.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)