PSU OMCs slump as crude oil boils

Shares of the state-run oil marketing companies fell by 3.52% to 5.11% at 11:23 IST on BSE after Brent Crude moved near $74 per barrel mark.

HPCL (down 5.11%), BPCL (down 4.60%) and Indian Oil Corporation (IOCL) (down 3.52%) declined.

Meanwhile, the S&P BSE Sensex was up 88.50 points, or 0.26%, at 34,420.18.

In the global commodities markets, Brent for June 2018 settlement was up 45 cents at $73.93 a barrel. The contract spurted $1.90 a barrel, or 2.65% to settle at $73.48 a barrel during the previous trading session on 18 April 2018.

Higher crude oil prices could increase under-recoveries of public-sector undertaking oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

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