Shares of three public sector oil marketing companies rose by 0.54% to 1.19% at 12:03 IST on BSE following a slump in crude oil prices.
HPCL (up 1.19%), BPCL (up 0.57%) and Indian Oil Corporation (up 0.54%), edged higher.
The S&P BSE Sensex was down 22.14 points, or 0.08% at 27,563.13.
Oil extended losses amid speculation that US crude stockpiles will increase, exacerbating a global supply glut that has driven prices to the lowest in more than 5-1/2 years.
Brent for February settlement was off 94 cents to $46.49 a barrel. The contract had lost $2.68 a barrel to settle at $47.43 a barrel during the previous trading session. Brent for March settlement was off $1.06 a barrel at $47.43 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.
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 of crude oil for PSU OMCs.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.08, compared with its close of 62.165 during the previous trading session.
PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
In order to fund the ambitious infrastructure development programme of the Government, particularly the building of 15000 kilometers of roads, during current and next financial year, the Government after market hours on 1 January 2015, increased basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 per litre, effective from 2 January 2015.
The oil firms had on 1 January 2015, skipped cutting rates of the two fuels that had become necessary as international oil rates plunged to their lowest level since May 2009. The excise duty hike was set off against the reduction in rates that was due because of the plunge in oil prices.
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