BPCL, HPCL, IOCL tank up to 29% as government cuts fuel prices

A sharp decline in stock price of six oil & gas companies have seen their combined market capitalisation fallingl by Rs 1.26 trillion in two days.

Shares of state-owned oil & gas companies, including oil marketing companies (OMCs), are reeling under pressure falling by up to 29% on the BSE in intra-day deals, extending their Thursday’s fall after the government, on Thursday, asked the them to absorb a Re 1 a litre cut in excise duty on petrol and diesel. The government also cut the excise duty on petroleum products by Rs 1.50 a litre with immediate effect. This is the first time in over four years that prices of either petrol or diesel are being controlled.

Among individual stocks, Bharat Petroleum Corporation (BPCL) tanked 29%