PSU OMCs rally on diesel price hike
Indian Oil, HPCL and BPCL are trading higher by 3% each, while Oil India has surged 5% and ONGC up 4% in early morning deals on BSE.
Shares of state-owned oil marking companies (OMC), including refinery stocks have rallied up to 5% in morning deals after the public sector oil retailers increased diesel retail prices by 45 paise a litre from Saturday.
All three listed OMC companies - Indian Oil Corporation, HPCL and BPCL are trading higher by 3% each, while Oil India has surged almost 5% and ONGC is up 4% in early morning deals on BSE compared to less than 1% rise in benchmark Sensex.
This is the second increase in diesel price since February 16th and third since January. Oil firms had slashed petrol rates sharply by 2.40 per litre on March 16 as international crude oil prices fell by over $5 per barrel.
IOC said in a statement that even after the current price hike, the company was incurring a revenue loss of 8.19 per litre. Oil firms' revenue loss on the fuel was about 11.26 per litre in the previous fortnight.
All three listed OMC companies - Indian Oil Corporation, HPCL and BPCL are trading higher by 3% each, while Oil India has surged almost 5% and ONGC is up 4% in early morning deals on BSE compared to less than 1% rise in benchmark Sensex.
This is the second increase in diesel price since February 16th and third since January. Oil firms had slashed petrol rates sharply by 2.40 per litre on March 16 as international crude oil prices fell by over $5 per barrel.
IOC said in a statement that even after the current price hike, the company was incurring a revenue loss of 8.19 per litre. Oil firms' revenue loss on the fuel was about 11.26 per litre in the previous fortnight.