India Slaps Windfall Tax on Oil Firms, Hitting Reliance Shares

India slapped taxes on fuel exports and local crude oil production to tap windfall gains from surging global prices. Mukesh Ambani’s Reliance Industries Ltd., the nation’s no. 1 fuel exporter, tumbled on the news.

New Delhi imposed levies Friday that targeted overseas sales of gasoline, diesel and aviation fuel, according to a government notification, along with taxes on crude produced from domestic fields. They are effective July 1.

India is joining a growing number nations that are placing windfall levies on energy firms to cope with surging costs. The taxes are aimed at helping India shore up revenues as it ...