ONGC Shares Shoot Up 4%, Fueled By This Government Tax Cut

Shares of ONGC jumped 4% on Thursday as the Indian government cut taxes and duties on fuels. 

What Happened: India's Finance Ministry on Thursday slashed the windfall profit tax on domestically produced crude petroleum to ₹4,350/tonne from ₹5,050/tonne. The export tax on diesel was also cut to ₹1 from ₹6/litre. Excise duty on Aviation Turbine Fuel was also brought down to ₹3 from the earlier ₹7.5/litre. 

The news comes on the heel of the energy giant posting its Q3 results. The company's standalone net profit jumped 26% year-over-year to ₹11,045 crore in the December quarter. Its gross revenue also jumped 35.5% YoY to ₹38,584 crore.

See Also: GAIL Shares Surge On Potential ‘Payments In Rupee' Deal With Russia's 2nd Largest Natural Gas Producer

The company also announced a second interim dividend for the current financial year. The board approved a dividend payout of ₹4 per share. The record date for the dividend payment has been set for Feb.24. The company had earlier announced an interim dividend of ₹ 6.75 per share last November.

Price Action: ONGC shares traded 3.53% higher at ₹152.70 on Thursday afternoon.

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Posted In: diesel pricesDividendexcise taxGovernment TaxNatural Gas ProductionONGCpetroleum stocksQ3FY23Tax Cuts