Three PSU OMCs rose 0.33% to 2.58% at 14:45 IST on BSE as US crude oil futures slipped to the lowest level in almost four months amid signs global economic growth may slow, curbing fuel demand.
BPCL (up 2.58% to Rs 404.90), HPCL (up 0.58% to Rs 313.75), and Indian Oil Corporation (up 0.33% to Rs 302.65) edged higher.
The S&P BSE Sensex was up 355.39 points or 1.94% at 18,713.19.
BPCL had outperformed the market over the past one month till 15 April 2013, sliding 1.31% compared with the Sensex's 5.51% fall. The scrip also outperformed the market in past one quarter, rising 2.45% as against Sensex's 8.15% fall.
HPCL had outperformed the market over the past one month till 15 April 2013, rising 2.25% compared with the Sensex's 5.51% fall. The scrip had also outperformed the market in past one quarter, declining 5.93% as against Sensex's 8.15% fall.
Indian Oil Corporation (IOC) had outperformed the market till 15 April 2013, sliding 4.83% compared with the Sensex's 5.51% fall. The scrip had also outperformed the market in past one quarter, rising 1.33% as against Sensex's 8.15% fall.
US crude oil futures for May 2013 delivery were down 81 cents barrel at $87.90 a barrel in the electronic trading today, 16 April 2013. The contract had tumbled $2.58 a barrel or 2.82% to settle at $88.71 a barrel on the New York Mercantile Exchange on Monday, 15 April 2013, its lowest closing level since 24 December 2012.
Lower crude oil price will reduce under-recovery of PSU OMCs on domestic sales 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 while completely deregulating diesel prices sold to institutional or bulk buyers.
PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight Monday because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013. The government deregulated petrol prices in June 2010.
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