Shares of the state-owned oil marketing companies such as Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) are down more than 3% each on concerns of implementation of fuel pricing mechanism.
Under the new policy, the finance ministry has proposed shifting the pricing of petrol and diesel from the current trade parity basis to export parity basis, which would help in excluding extra costs like freight and various taxes and duties.
According to reports, the fuel retailers are opposing switch to export parity pricing. The oil marketing companies fear a loss of Rs 18,000 crore if the pricing policy is changed. Private refiners are likely to take a hit of Rs 4,200 crore in sales, report added.
Meanwhile, the Business Standard report suggests that the Competition Commission of India (CCI) has ordered a probe by its Director General (Investigation) into the alleged cartelisation of state-owned oil marketing companies for fixing petrol prices.
Among the individual stocks, HPCL and BPCL have tanked 6% each at Rs 286 and Rs 378 respectively, while IOC is down 5% at Rs 305 on BSE.
Under the new policy, the finance ministry has proposed shifting the pricing of petrol and diesel from the current trade parity basis to export parity basis, which would help in excluding extra costs like freight and various taxes and duties.
According to reports, the fuel retailers are opposing switch to export parity pricing. The oil marketing companies fear a loss of Rs 18,000 crore if the pricing policy is changed. Private refiners are likely to take a hit of Rs 4,200 crore in sales, report added.
Meanwhile, the Business Standard report suggests that the Competition Commission of India (CCI) has ordered a probe by its Director General (Investigation) into the alleged cartelisation of state-owned oil marketing companies for fixing petrol prices.
Among the individual stocks, HPCL and BPCL have tanked 6% each at Rs 286 and Rs 378 respectively, while IOC is down 5% at Rs 305 on BSE.
