Shares of public sector undertakings (PSU) oil marketing companies (OMCs) likeBPCL, HPCL and IOC are trading higher by up to 4% in morning trades on reports that the Government is looking at the option of increasing diesel and kerosene prices by Rs 10 per litre in phases.
“The government is contemplating raising diesel prices by Rs 1 per litre each month for next 10 months to bring retail rates at par with their cost,” the Business Standard report suggests quoting a senior official in the oil ministry.
The price hike, if it materialises, will reduce the under-recoveries of the oil marketing companies.
Among the individual stocks, BPCL has rallied 4% to Rs 359, followed by HPCL (up 3% at Rs 289) and IOC (up 2% at Rs 267) on the Bombay Stock Exchange.
ONGC, GAIL India and OIL India, the state-owned oil and gas companies, are also trading higher by 1-2% at 0945 hours.