Shares of three public sector oil marketing companies rose by 1.78% to 3.15% at 9:22 IST on BSE as diesel prices were on Monday, 12 May 2014, hiked by Rs 1.09 a litre, excluding state levies.
BPCL (up 3.15%), Indian Oil Corporation (IOC) (up 3.08%) and HPCL (up 1.78%), edged higher.
The S&P BSE Sensex was up 212.93 points, or 0.90% at 23,763.93.
IOC increased the price of diesel (retail) by Rs 1.09 per litre (excluding state levies) from midnight of 12 May 2014 - 13 May 2014.
Even after the proposed price increase, diesel (retail) shall still be left with an under-recovery of Rs 5.71 per litre (based on pricing cycle applicable for 1st fortnight of May 2014), Indian Oil Corporation (IOC) said in a statement.
Public sector oil marketing companies (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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