India's energy, oil and gas indexes fall on GST hike on exploration, production

Oil India

04/09/2025 10:20

** India's Nifty Oil & Gas .NIFOILGAS and Nifty Energy .NIFTYENR indexes are down 0.87%, while the broader NSE Nifty 50 index .NSE is up 0.15%

** India government raised tax rates on oil and gas exploration, production, and pipeline services from 12% to 18%

** Higher GST rate will make exploration and production projects — particularly coal-bed methane initiatives — less competitive, creating headwinds for efforts aimed at boosting domestic output and reducing import dependence, says Dhaval Popat, energy analyst at Choice Institutional Equities

** 11 of 15 stocks in Nifty Oil & Gas index, and 35 of 40 stocks in Nifty Energy index are trading lower

** India's top oil explorers, Oil India OILI.NS and ONGC ONGC.NS, which are constituents of both oil & gas and energy indexes, are down 2.1% and 1.2%, respectively

** YTD, Nifty Oil & Gas up 1.7%, Nifty Energy down 2.5%

 (Reporting by Anuran Sadhu in Bengaluru)

 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))