Shares of three public sector oil marketing companies rose by 3.63% to 4.74% at 11:51 IST on BSE, following a sharp drop in Brent crude oil prices in the international market.
HPCL (up 4.74%), Indian Oil Corporation (up 3.79%) and BPCL (up 3.63%), edged higher.
The S&P BSE Sensex was down 23.86 points, or 0.09% at 26,248.11.
Brent crude oil prices dropped sharply after the International Monetary Fund (IMF) cut its outlook for global growth. Brent for November settlement was off $1.17 a barrel at $90.94 a barrel. The contract had declined 68 cents to settle at $92.11 a barrel yesterday, 7 October 2014, the lowest settlement price since June 2012.
Lower crude oil prices will decrease under recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at government controlled prices.
Government, on 1 October 2014, said PSU OMCs were making gains of Rs 1.90 per litre on diesel for the period of 1-15 October 2014. During the same period, under-recovery on kerosene and LPG stood at Rs 156 crore, it added. This is lower than Rs 190 crore daily under-recoveries during previous fortnight, it said.
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Diesel prices have not been deregulated or freed yet and so rates cannot be reduced. Petrol on the other hand, had been deregulated in June 2010 and rates have since then moved every fortnight in tandem with the cost.
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