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PSU OMCs gain after fuel price hike

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Capital Market
Last Updated : Jul 01 2014 | 11:53 PM IST

Shares of three public sector oil marketing companies rose by 0.78% to 2.13% at 9:41 IST on BSE as petrol prices were hiked by Rs 1.69 a litre and diesel by Rs 0.50 litre effective from 1 July 2014.

Indian Oil Corporation (IOC) (up 2.13%), HPCL (up 1.08%) and BPCL (up 0.78%), edged higher.

The S&P BSE Sensex was up 82.74 points, or 0.33% at 25,496.52.

The price hike is excluding state levies. Public sector oil marketing companies (PSU OMCs) cited a rise in global oil prices and the fall in rupee for the hike in fuel prices. India imports two-thirds of its oil needs.

Due to geo-political unrest in the Middle East, there has been significant increase in international oil prices during the past two weeks, IOC said in a statement.

The movement of prices in international oil market and INR-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, IOC said.

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PSU OMCs suffer under-recovery on domestic sales of diesel, kerosene and LPG at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The government has already freed pricing of petrol.

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First Published: Jul 01 2014 | 9:41 AM IST

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