Public oil marketing companies have surged after the Modi-led government hiked diesel prices by 50 paise per litre, excluding state levies.
PSU OMCs have been suffering under-recoveries on domestic sales of diesel, kerosene and LPG at government controlled prices. The total under-recoveries, or losses from selling diesel, LPG and kerosene at below market prices, stood at Rs 1 trillion (USD 16 billion) in the first nine months of the financial year.
In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The retail diesel prices are being revised every month since then. The government has already freed pricing of petrol.
Bharat Petroleum Corporation (BPCL) has surged 4.8% to Rs 547 on the BSE. The stock opened at Rs 525, touched a high of Rs 551 and a low of Rs 524 on the BSE. Over 867,575 shares have been traded on both the stock exchanges so far.
Hindustan Petroleum corporation (HPCL) has jumped 4.8% to Rs 420 on the BSE. The stock opened at Rs 405, touched a high of Rs 424 and a low of Rs 404 on the BSE. Over 1,664,752 shares have been traded on both the stock exchanges so far.
GAIL has risen by 2.2% to Rs 386 on the BSE. The stock opened at Rs 379, touched a high of Rs 389.7 and a low of Rs 377.5 on the BSE. Over 1,996,202 shares have been traded on both the stock exchanges so far.
ONGC has zoomed 5% to Rs 397 on the BSE. The stock opened at Rs 380, touched a high of Rs 398 and a low of Rs 378 on the BSE. Over 3,271,275 shares were traded on both the stock exchanges so far.
