PSU OMCs decline after gains in crude oil prices

Shares of three public sector oil marketing companies shed by 0.26% to 1.49% at 11:55 IST on BSE after global crude oil prices rebounded.

Meanwhile, the BSE Sensex was down 55.27 points, or 0.19%, to 28,793.02.

Among PSU OMCs, BPCL (down 1.49%), Indian Oil Corporation (IOCL) (down 0.7%) and HPCL (down 0.26%) edged lower.

Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

Brent crude oil futures extended gains registered during the previous trading session, continuing a rebound from near six-year lows plumbed last week. Brent for March settlement was up 84 cents at $57.41 a barrel. The contract had advanced $2.41 a barrel or 4.44% to settle at $56.57 a barrel during the previous trading session.

Meanwhile, PSU OMCs cut petrol prices for the tenth time since August by Rs 2.42 to Rs 58.91 per litre in Delhi, while diesel prices were cut by Rs 2.21 to Rs 46.01, on 3 February 2015. The revised prices took effect from 4 February 2015. PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.

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