Shares of three public sector oil marketing companies rose by 1.71% to 2.9% at 12:33 IST on BSE as global crude oil prices declined yesterday, 26 May 2015.
Among PSU OMCs, BPCL (up 1.71%), HPCL (up 1.88%) and Indian Oil Corporation (up 2.9%) edged higher.
Brent crude oil futures edged higher after previous trading session's steep decline. Brent for July settlement was up 49 cents at $64.21 a barrel. The contract had declined $1.65 a barrel or 2.52% to settle at $63.72 a barrel during previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 64.03, compared with closing of 63.98 during the previous trading session.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
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