Shares of three PSU OMCs were up 1.46% to 2.2% at 14:10 IST on BSE on reports that the oil ministry has decided to move a Cabinet note for a higher increase in diesel price - in line with the Rs 5 raise recommended by the Kirit Parikh committee.
BPCL (up 2.2% at Rs 355.55), Indian Oil Corporation (up 1.79% at Rs 215.55) and HPCL (up 1.46% at Rs 240.25) edged higher.
Meanwhile, the S&P BSE Sensex was up 42.29 points or 0.2% at 21,075.
BPCL had outperformed the market over the past one month till 24 December 2013, advancing 4.57% compared with the Sensex's 4.03% rise. The scrip had also outperformed the market in past one quarter, surging 10.15% as against Sensex's 5.58% rise.
HPCL had outperformed the market over the past one month till 24 December 2013, advancing 17% compared with the Sensex's 4.03% rise. The scrip had also outperformed the market in past one quarter, jumping 22.12% as against Sensex's 5.58% rise.
Indian Oil Corporation (IOC) had outperformed the market over the past one month till 24 December 2013, advancing 5.51% compared with the Sensex's 4.03% rise. The scrip had, however, underperformed the market in past one quarter, declining 3.46% as against Sensex's 5.58% rise.
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The Parikh committee, which had filed its report towards the end of October, had also suggested a Rs 250 a cylinder increase in the price of domestic cooking gas and Rs 4 a litre in kerosene oil, with immediate effect.
On 20 December 2013, PSU OMCs hiked the petrol price by 41 paise a litre, excluding local sales tax or VAT, following the government's decision to raise commission paid to petrol pump dealers and firming global oil rates. Simultaneously, diesel rates were increased by 10 paise per litre, excluding local sales tax or VAT, due to a hike in dealers' commission.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
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