PSU OMCs gain on likely hike in diesel, LPG price

The government is likely to raise diesel and subsidized liquefied petroleum gas prices in a phased manner.

Shares of public sector undertakings (PSU) oil marketing companies (OMCs) such as  BPCL, HPCL and IOC continued their upward march and traded higher in the range of 1-2% in opening deals on reports that the government is likely to raise diesel and subsidized liquefied petroleum gas (LPG) prices in a phased manner.

“The petroleum and natural gas ministry had worked out various scenarios and the impact those would have on the government’s subsidy burden,” the Business Standard report suggests quoting a senior government official.

The ministry is looking at the option of raising the cap while increasing the price of subsidised LPG by over Rs 100, added report.

Among the individual stocks, BPCL and HPCL are trading higher by 2% at Rs 392 and Rs 343 respectively, while IOC is up 1% at Rs 290 on the Bombay Stock Exchange. ONGC (up 2.5% at Rs 299) and Oil India (up 1% at Rs 479) the state-owned oil and gas companies, are also trading higher by 1-2% at 0920 hours.