Shares of state-owned oil marketing companies – BPCL, HPCL and Indian Oil are trading lower by up to 4% on BSE after petroleum minister Veerappa Moily ruled out an increase in diesel and LPG prices for now.
Moily insisted that no proposal has been moved to the Cabinet for raising diesel rates beyond the 40-50 paise a litre monthly increase, which has been implemented since January this year, the PTI report suggests.
With rupee depreciating sharply this fiscal, the difference between the cost of producing fuel and the retail selling price has widened. Diesel is currently being sold at a loss of Rs 14.50 per litre.
According to market experts, the rupee depreciation is negative for the state-owned oil marketing companies, which continue to import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.
Among the individual stocks, BPCL has dipped 4.2% at Rs 303, HPCL down 4% at Rs 188 and Indian Oil by 1.5% at Rs 216 on the Bombay Stock Exchange (BSE).
Moily insisted that no proposal has been moved to the Cabinet for raising diesel rates beyond the 40-50 paise a litre monthly increase, which has been implemented since January this year, the PTI report suggests.
With rupee depreciating sharply this fiscal, the difference between the cost of producing fuel and the retail selling price has widened. Diesel is currently being sold at a loss of Rs 14.50 per litre.
According to market experts, the rupee depreciation is negative for the state-owned oil marketing companies, which continue to import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.
Among the individual stocks, BPCL has dipped 4.2% at Rs 303, HPCL down 4% at Rs 188 and Indian Oil by 1.5% at Rs 216 on the Bombay Stock Exchange (BSE).
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