Share price of BPCL, Indian Oil and HPCL fell in early trade today after Modi government raised increased excise duty on petrol by Rs 10 per litre and diesel by Rs 13 per litre.
BPCL share price fell 10% to Rs 312.55 compared to the previous close of Rs 346.80 on BSE.
The share has risen 8.53% in last one month. However, the stock has fallen 30% since the beginning of this year and lost 11.57% during the last one year.
Indian Oil share price fell 7.49% to a fresh 52 week low of Rs 72.85 compared to the previous close of Rs 78.75 on BSE. The stock has lost 4.34% during the last one month and fallen 51.47% during the last one year. The stock has declined 39.51% since the beginning of this year.
Similarly, HPCL stock lost 13.02% to Rs 186.7 on BSE. However, the stock has gained 9.6% during last one month. The stock has fallen 31.22% during last one year and declined 24% since the beginning of this year.
The move has made to tackle the economic fallout due to the coronavirus outbreak. Retail sale prices of petrol and diesel will, however, not change on account of this increase in duties. Therefore, it will have no impact on the consumer. Oil marketing companies will have to bear the impact of excise duty hike. Government, on May 5, raised the road and infrastructure cess on both petrol and diesel by Rs 8 per litre.
These duty rate changes shall come into effect from May 6. Special additional excise duty on petrol has been increased by Rs 2 per litre and on diesel by Rs 5 per litre. The revenue generated from these duties shall be used for infrastructure and other developmental items of expenditure.