PSU OMCs edge lower on buzz of diesel price cut

Three PSU OMCs lost 0.37% to 0.73% at 9:55 IST on BSE on reports that diesel prices may be cut for first time in 7 years on declining crude oil prices.

Indian Oil Corporation (down 0.73% at Rs 394.75), BPCL (down 0.45% at Rs 689), and HPCL (down 0.37% at Rs 491.55) declined.

Meanwhile, the S&P BSE Sensex was down 122.32 points or 0.45% at 27,143.

As per reports, petrol prices may be cut by Re 1 a litre and there is also a likelihood of first reduction in diesel rates in seven years owing to continuous downtrend in international crude oil prices. Petrol and diesel rates are due for revision on 15 September and there is a possibility of reduction in retail prices if benchmark Brent crude continues to stay below $100 a barrel mark, reports added.

Brent for October settlement was up 6 cents at $99.22 a barrel. The contract declined $1.04 to settle at $99.16 a barrel yesterday, 9 September 2014.

Diesel prices were last hiked on 31 August by 50 paise in line with the January 2013 decision to raise rates in small doses every month to bridge the difference between retail selling price and cost. The under-recovery on diesel, had reduced to just 8 paise a litre after the last increase.

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