Three PSU OMCs fell by 1.03% to 2.02% at 12:50 IST on BSE on reports the state run oil companies may slash the prices of petrol and diesel effective 16 October 2014.
Meanwhile, the BSE Sensex was down 56.68 points, or 0.21%, to 26,327.49.
HPCL (down 1.03%), BPCL (down 1.39%), and Indian Oil Corporation (IOC) (down 2.02%) declined.
State run oil marketing companies (PSU OMCs) will review fuel prices on 16 October 2014 based on the average imported oil price in the previous fortnight. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.
Brent crude oil prices had witnessed sharp fall recently. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Brent crude oil prices dropped today, 14 October 2014, as expectations faded that OPEC could cut output and shore up prices. Brent for November settlement was off 63 cents at $88.26 a barrel. The contract had tumbled $1.32 to settle at $88.89 a barrel on Monday, 13 October 2014, its lowest closing level since 1 December 2010. Brent for December settlement was off 67 cents at $88.74 a barrel.
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