Three PSU OMCs lost 2.16% to 2.48% at 9:35 IST on BSE after Indian Oil Corporation on Friday, 15 March 2013, announced slashing petrol price by Rs 2 per litre excluding VAT with effect from midnight of 15 March 2013.
BPCL (down 2.48% at Rs 390.05), Indian Oil Corporation (down 2.35% at Rs 309.50), and HPCL (down 2.16% at Rs 298.50) edged lower.
The S&P BSE Sensex was down 161.49 points or 0.83% at 19,266.07.
HPCL had underperformed the market over the past one month till 15 March 2013, sliding 1.61% compared with the Sensex's 0.21% fall. The scrip had, however, outperformed the market in past one quarter, surging 8.44% as against Sensex's 0.57% gain.
BPCL had outperformed the market over the past one month till 15 March 2013, surging 5.21% compared with the Sensex's 0.21% fall. The scrip had also outperformed the market in past one quarter, jumping 14.09% as against Sensex's 0.57% gain.
Indian Oil Corporation (IOC) had outperformed the market over the past one month till 15 March 2013, rising 0.65% compared with the Sensex's 0.21% fall. The scrip had also outperformed the market in past one quarter, jumping 21.6% as against Sensex's 0.57% gain.
After the inclusion of VAT, the reduction in the price of petrol in Delhi comes to Rs 2.40 per litre, resulting in the fuel costing Rs 68.34 per litre in Delhi against Rs 70.74 per litre. The reduction comes on the back of easing in international oil prices. Friday's slash in petrol prices follows two rounds of price hikes since February. Petrol prices were raised by Rs 1.50 per litre on 16 February, followed by another increase of Rs 1.40 per litre on 2 March 2013. Since last price change, international prices of crude oil have slid from $112.73 a barrel to $107.41 a barrel leading to consequential fall in international prices of MS. On the other hand, Rupee has depreciated marginally, IOC said in a statement. Following this trend, it has been decided to pass on the benefit to the customers, the company added.
IOC said that PSU OMCS have already lost over Rs 1130 crore on sale of petrol so far during the current financial year (FY 2013). In addition to losses on sale of petrol, PSU OMCs are suffering under-recovery on sale of High Speed Diesel (HSD) of Rs 8.64 per litre applicable for the second fortnight of March 2013. The under-recovery for PDS Kerosene stands at Rs 33.43 per litre for March 2013. In case of Domestic LPG, the under-recovery stands at Rs 439 per cylinder for March 2013. The under-recovery for PDS Kerosene and Domestic LPG is calculated on monthly basis whereas the under-recovery for HSD is calculated on fortnightly basis.
Projected under-recovery of the PSU OMCs on three sensitive products is expected to be around Rs 163000 crore during current year, IOC said. The movement in international oil prices and Rupee-Dollar exchange rate is being monitored and decision on future price changes shall be taken accordingly, IOC said in statement.
Three PSU OMCs (HPCL, BPCL, IOC) review the fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.
In Union Budget 2013-14 announced on 28 February 2013, the government raised the petroleum subsidy to Rs 96880 crore from earlier budget estimate of Rs 43580 crore for 2012-13. For 2013-14, the petroleum subsidy is pegged at Rs 64998 crore.
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