India cuts fuel tax, state-owned oil marketing companies stocks rise

The Indian federal government has lowered diesel and petrol taxes to cushion the impact on refining companies from the surge in crude oil prices, leading to an increase in share prices of the country's state-owned fuel retailers in early trading. According to a government announcement, India has reduced the special additional excise duty on petrol from 13 rupees per liter to 3 rupees, and the special additional excise duty on diesel from 10 rupees per liter to zero. This move aims to provide support for refining companies, as most of these companies have so far absorbed the cost pressures from rising crude oil prices on their own. Shares of Indian Oil Corporation rose by up to 4%; Bharat Petroleum Corporation saw the highest increase of 4.9%, before most gains narrowed.