Three PSU OMCs fell by 2.43% to 4.96% at 14:55 IST on BSE on reports government today, 13 November 2014, hiked excise duty on petrol and diesel by Rs 1.50 per litre each for the two fuels.
Meanwhile, the S&P BSE Sensex was down 132.96 points or 0.47% at 27,885.87.
BPCL declined 4.45% after the company said its net profit fell 50.14% to Rs 464.20 crore on 0.06% rise in total income to Rs 62280.28 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 12 November 2014.
HPCL (down 4.96%) and Indian Oil Corporation (down 2.43%) declined.
Excise duty on normal or unbranded petrol has been hiked from Rs 1.20 to Rs 2.70 per litre while that of branded petrol has been hiked from Rs 2.35 to Rs 3.85 per litre, report said.
Recent further slide in crude oil prices had given rise to speculations that fuel prices might be reduced on sliding global oil rates. However the hike in excise duty might curtail the scope of price cut. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.
Meanwhile, Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut. Brent for December settlement, which expires today, 13 November 2014, was off 69 cents at $79.69 a barrel. The contract had lost $1.29 a barrel to settle at $80.38 a barrel yesterday, 12 November 2014, its lowest close since September 2010. Brent for January delivery was off 55 cents at $80.58 a barrel.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
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