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Reliance Shares Tumble Amid Export Duty Fears
6 Apr
Summary
- Reliance Industries shares fell over 4% on Monday.
- New export duties on diesel and ATF sparked market concerns.
- SEZ refinery exemption may offset some of the tax impact.
Reliance Industries saw its share price drop by more than 4% on Monday, leading to a significant decrease in its market capitalization to approximately ₹17.65 lakh crore. This sharp correction follows an over 8% decline in the past two weeks. The recent sell-off is primarily attributed to the government's imposition of export duties on diesel and aviation turbine fuel, effective March 26. These duties, amounting to ₹21.50 per litre on diesel and ₹29.50 per litre on ATF, have fueled concerns about potential impacts on the company's refining margins.
However, a crucial clarification emerged stating that Reliance Industries' Special Economic Zone (SEZ) refinery may be exempt from these export taxes due to existing judicial rulings. Analysts suggest that if the export tax only applies to non-SEZ volumes, the financial impact could be largely mitigated. This exemption is a key factor in assessing the near-term outlook for Reliance's refining business, with market watchers closely monitoring the evolving situation.
