Indian Oil, HPCL, BPCL gain on report of kerosene subsidy removal

IOC, HPCL and BPCL were up 3% to 5% on BSE in intra-day trade in otherwise weak market

Shares of state-owned oil refiners rallied by up to 5% on BSE in intra-day trade on report that the government will end subsidy on kerosene.

Indian Oil Corporation (IOC) gained 5% to Rs 388, while Hindustan Petroleum Corporation (HPCL) surged 4.4% to Rs 401 and Bharat Petroleum Corporation (BPCL) rose 3% to Rs 499 on BSE in intra-day trade. On comparison, the S&P BSE Sensex was down 159 points or 0.49% at 32,318 at 10:25 am.

The government has asked them to raise prices of subsidised kerosene prices by 0.25 paise every fortnight until the subsidy is eliminated,