Shares of three public sector oil marketing companies fell by 0.18% to 2.05% at 10:56 IST on BSE after oil prices extended gains in Asian trade on Wednesday, 14 May 2014.
HPCL (down 2.05%), Indian Oil Corporation (down 1.92%) and BPCL (down 0.18%), edged lower.
The S&P BSE Sensex was down 13.46 points, or 0.06% at 23,857.77.
Oil prices extended gains in Asian trade on Wednesday following comments by a top US energy official that the world's biggest crude consumer is considering lifting a longstanding ban on exports.
Crude oil for June delivery was up 35 cents, 0.34% to $102.05 while Brent North Sea crude for June was up 21 cents, or 0.19% to $109.45 per barrel in Asian trading today, 14 May 2014.
On Tuesday, 13 May 2014, crude oil for June delivery rose $1.11, or 1.1%, to settle at $101.70 a barrel on the New York Mercantile Exchange. June Brent futures rose 83 cents, or 0.8%, to $109.24 a barrel on the ICE Futures exchange.
Higher crude oil prices will increase under recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The government has already freed pricing of petrol.
PSU OMCs increased the price of diesel (retail) by Rs 1.09 per litre (excluding state levies) from midnight of 12 May 2014 - 13 May 2014. Even after the price increase, diesel (retail) shall still be left with an under-recovery of Rs 5.71 per litre (based on pricing cycle applicable for 1 fortnight of May 2014), Indian Oil Corporation (IOC) said in a statement.
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