PSU OMCs in demand, HPCL surges 5%

BPCL and Indian Oil are up 4% each at Rs 463 and Rs 272 respectively on the Bombay Stock Exchange.

Shares of state-owned oil marketing companies (OMCs) are trading higher by up to 5% after the Election Commission said that OMCs could revise petrol prices without seeking the panel’s approval.

State-owned oil firms are due to announce revised petrol and diesel prices on March 31.

Hindustan Petroleum Corporation (HPCL) has surged 5% to Rs 308 on the Bombay Stock Exchange. Bharat Petroleum Corporation (BPCL) and Indian Oil are up 4% each at Rs 463 and Rs 272 respectively.

Petrol prices are likely to be cut by over one rupee a litre early next week as appreciation in value of rupee against US dollar and fall in global oil rates has made imports cheaper.

However, diesel rates will go up by 50 paisa per litre in line with the practice of raising prices by small quantum every month to wipe away subsidy on the fuel, the PTI report suggests.

Meanwhile, strength in rupee against the dollar, which touched an eight-month high on Wednesday, has eased concerns of higher cost of crude oil imports. PSU OMCs import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.