Oil PSUs up 3% on hike in fuel prices buzz

State-owned oil companies stocks today surged by as much as 3 per cent in the early trade at Bombay Stock Exchange, on speculations of a rise in petrol prices next week.

Indian Oil, Hindustan Petroleum and Bharat Petroleum scrips climbed on reports that petrol prices may go up by Rs 1.50-Rs 2 per litre early next week.

The news brought some cheer to the investors, following which the scrip of IOC zoomed by 2.73 per cent to touch an early high of Rs 381.90 on the BSE.

Similarly, the scrip of HPCL and BPCL went up, with the former jumping 2.64 per cent to a high of Rs 420.80, while the latter climbed 3 per cent to an early peak of Rs 697.50.

The last time these companies had raised petrol prices was on November 9. At present, IOC, BPCL and HPCL lose Rs 75 crore in revenues on selling diesel below its imported cost.

Buoyed by the gains, the BSE oil & gas index was trading 54.65 points or 0.52 per cent up at 10,518.92 level. Besides, the BSE sensitive index Sensex was trading 145.17 points down at 19,551.31 at 1210 hours.