Oil and Natural Gas Corporation (ONGC) shares rose 3% to Rs 163.90 in Tuesday’s intra-day trade on the BSE after the government reduced windfall tax on crude oil from Rs 6,400 per tonne to Rs 4,100 per tonne.

Shares of the state-owned oil exploration and production company were trading close to the May 5, 2022, 52-week high of Rs 168.40.

Meanwhile, shares of Oil India rose 1% to Rs 257.75. In contrast, the S&P BSE Sensex rose 0.58% to 61,467 at 10:11 am.

In the 20th windfall tax review, Cess has been reduced to $7/bbl from May 2. This will reduce costs for domestic upstream companies, including ONGC and Oil India. The Special Additional Excise Duty (SAED) imposed on refiners exporting petrol, air turbine fuel (ATF), and diesel remains at zero.