Shares of three PSU OMCs fell by 2.12% to 4% at 11:18 IST on BSE as higher crude oil prices and weakness in rupee raised concerns about increased costs of importing oil.
BPCL (down 4%), HPCL (down 3.17%) and Indian Oil Corporation (down 2.12%), edged lower.
The BSE Sensex was up 29.92 points, or 0.15% at 19,347.11.
Crude oil price for September delivery rose as much as 65 cents, or 0.60% to $108.54 a barrel in electronic trading today, 2 August 2013. On Thursday, 1 August 2013, crude for September delivery went up $2.86 to settle at $107.89 a barrel on the New York Mercantile Exchange.
At 11:35 IST, the Indian rupee was trading at 60.79 against the dollar.
PSU OMCs hiked petrol price by 70 paise per litre and diesel by 50 paise a litre. The increase in rates, excluding local sales tax or VAT, were effective from Thursday, 1 August 2013.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at 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. The government has already freed pricing of petrol.
The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas after trading hours on Thursday, 1 August 2013, said that the under-recovery on high speed diesel (HSD) applicable for first fortnight of August 2013 went down to Rs 9.29 per/litre from Rs 9.45 per litre for the second fortnight of July 2013. The under-recovery on, both, PDS Kerosene and Domestic LPG, has risen sharply for August 2013. The under-recovery on PDS Kerosene has surged to Rs 33.54 per litre for August 2013, from Rs 30.52 per litre in July 2013. The under-recovery on Domestic LPG has surged to Rs 412 per cylinder for August 2013, from Rs 368.58 per cylinder in July 2013. While the under-recovery on diesel is calculated on fortnightly basis, the under-recovery on PDS Kerosene and Domestic LPG is calculated on monthly basis.
PSU OMCs are currently incurring combined daily under-recovery of about Rs 379 crore on the sale of diesel, PDS Kerosene and Domestic LPG at government controlled prices.
Meanwhile, the Union Cabinet on Thursday, 1 August 2013, approved a proposal to sell a 10% stake in state-run refiner and fuel retailer Indian Oil Corporation (IOC). The government currently owns 78.92% stake in IOC.
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