Political overhang on fuel pricing amid elections to keep OMC stks in check

The rise in prices of petrol and diesel has not been commensurate with the surge in crude oil prices, data shows.

A rise in crude oil prices, especially in an election year, has seen oil marketing companies – Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOC) – underperform the markets thus far in calendar year 2018 (CY18). 

On a calendar year basis, these stocks have slipped 25 per cent, 24 per cent and 15 per cent respectively, ACE Equity data shows. The S&P BSE Oil & Gas index during this period has lost 12 per cent as compared to 1.7 per cent rise in the S&P BSE Sensex.