Rising crude prices: What it means for India's oil, telecom sectors

The PSU producers price oil and gas according to set formulae. Hence, E&P firms gain if international prices rise, since the formulae are linked to international prices

Public sector oil refining-marketing companies (OMCs) have taken a hammering in the past year. The downtrend is likely to continue. Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil (IOC) are down 8.5 per cent, 10.8 per cent and 4 per cent, respectively in the last 30 days, and down by 19 per cent, 19.9 per cent and 62 per cent in the last year. GAIL, which is a gas marketer, is also down 23 per cent in the last 30 days. 

The equation is simple. If crude oil prices rise and gas prices rise alongside, OMCs suffer due