Shares of three public sector oil marketing companies rose by 1.21% to 3.16% at 10:30 IST on BSE after global crude oil prices slumped yesterday, 4 February 2015.
Meanwhile, the BSE Sensex was up 148.38 points, or 0.51%, to 29,031.49.
Among PSU OMCs, BPCL (up 3.16%), Indian Oil Corporation (IOCL) (up 1.21%) and HPCL (up 2.29%) edged higher.
Brent crude oil futures edged higher after big losses in the previous session, after China took steps to pour fresh liquidity into the world's second-biggest economy to spur activity. Brent for March settlement was up 50 cents at $54.66 a barrel. The contract had slumped $3.75 a barrel to settle at $54.16 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.845, compared with its close of 61.7525 during the previous trading session.
Lower crude oil prices could decrease under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
More From This Section
Meanwhile, PSU OMCs cut petrol prices for the tenth time since August by Rs 2.42 to Rs 58.91 per litre in Delhi, while diesel prices were cut by Rs 2.21 to Rs 46.01, on 3 February 2015. The revised prices took effect from 4 February 2015. PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
Powered by Capital Market - Live News