Shares of three public sector oil marketing companies fell by 0.75% to 2.12% at 10:42 IST on BSE as crude oil prices firm up.
HPCL (down 2.12%), Indian Oil Corporation (down 1.27%) and BPCL (down 0.75%), edged lower.
Meanwhile, the S&P BSE Sensex was down 118.78 points, or 0.41%, at 28,680.91.
Brent crude oil futures edged lower after hitting 2015 highs above $63 per barrel yesterday, 15 April 2015, after US inventories built up more slowly than expected and talks between major oil producers this week triggered speculation of production cuts.
Brent for June settlement was off 30 cents at $63.02 a barrel. The contract had surged $3.51 a barrel or 5.86% to settle at $63.32 a barrel during previous trading session.
Higher crude oil prices could increase under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
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Meanwhile, PSU OMCs announced a reduction in retail selling price of petrol and diesel after trading hours yesterday, 15 April 2015. Indian Oil Corporation announced a reduction in retail selling price of petrol by 80 paise per litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of petrol in Delhi will become Rs 59.20 per litre. IOCL has announced a reduction in retail selling price of diesel by Rs 1.30 per litre at Delhi (including state levies) with corresponding price revision in other states.
With this change, the price of diesel in Delhi will become Rs 47.20 litre. The reduction in petrol and diesel prices became effective from the midnight of 15/16 April 2015. Since the last reduction in petrol and diesel prices on 2 April 2015, the trend of international prices of petrol and diesel and the rupee-dollar exchange rate warrant a further downward revision in prices, the impact of which is being passed on to the consumers with this price decrease, IOCL said. The movement of prices in international oil market and the rupee-dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, IOCL said.
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