Shares of oil and gas companies such as Oil and Natural Gas Corporation (ONGC), Reliance Industries and Bharat Petroleum Corporation Limited (BPCL) traded mixed on Thursday after the government revised windfall tax on domestically produced crude oil and export duty on diesel and jet fuel.

In the BSE oil and gas sector, Gujarat Gas, BPCL, IGL, Hindustan Petroleum and GAIL stocks are in green, while Indian Oil, Petronet LNG, Reliance and ATGL are in red.

The mixed trend comes after the government raised the profit tax on diesel exports to Rs 13.5 per litre and jet fuel to Rs 9 per litre while raising the duty on domestically produced crude oil to Rs 13,300 from Rs 13,000, in line with global price tightening.

A windfall tax is a one-time tax imposed by the government on a company. When a company or industry benefits from something they are not responsible for, the economic gain is called a windfall. The government typically levies a higher-than-normal tax on such profits, a so-called windfall tax.

The export tax was raised as profit margins rose due to a slight change in international oil prices and expectations of production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies. Brent crude was down 0.73% at $94.94 a barrel at 11.32 am.

India first introduced a windfall profits tax on July 1, joining many countries that levy taxes on excess profits from energy companies. But international oil prices have cooled since then, eroding the profit margins of oil producers and refiners.