Shares of Reliance Industries Limited (RIL) fell more than 4% on Friday, wiping out nearly ₹82,000 crore from its market capitalisation. The decline followed the government’s decision to reintroduce windfall taxes on exports of diesel and air turbine fuel (ATF), triggering concerns among investors and pressuring the broader market.

Government Aims to Secure Domestic Fuel Supply
Finance Minister Nirmala Sitharaman said the increase in export duties—₹21.5 per litre on diesel and ₹29.5 per litre on ATF—is intended to ensure sufficient domestic availability of these fuels. The move is part of the government’s strategy to manage supply while responding to volatility in global oil markets.

Consumer Relief Through Excise Duty Cuts
At the same time, the government announced reductions in excise duties to ease the burden on consumers. The special excise duty on petrol has been lowered to ₹3 per litre, while it has been completely removed for diesel.

Fuel Price Hike Raises Demand Concerns
The policy shift comes after Nayara Energy recently increased fuel prices, raising petrol by ₹5 per litre and diesel by ₹3 per litre. Dealers have voiced concerns that higher prices could weaken demand, with early signs also indicating possible supply tightness in some areas.

Pressure on RIL and Broader Market Indices
RIL, led by Mukesh Ambani, is one of India’s largest exporters of diesel and ATF, with its Jamnagar refineries contributing significantly to national production. The renewed export tax is likely to impact its refining margins. The company has also denied reports of importing crude oil from Iran, calling them misleading.

The fall in RIL shares weighed on benchmark indices, with both the Sensex and Nifty declining by around 2%. The stock has dropped approximately 4% over the past five days and nearly 3% over the past month, reflecting rising investor caution amid policy changes and global uncertainties.