PSU OMCs gain after slide in crude oil prices

Shares of three public sector oil marketing companies rose by 0.01% to 1.53% at 11:20 IST on BSE after global crude oil prices witnessed sharp losses in previous session.

Meanwhile, the S&P BSE Sensex was up 230.64 points or 0.83% at 27,875.66.

Among PSU OMCs, BPCL (up 1.26%), and Indian Oil Corporation (up 0.01%) and HPCL (up 1.53%) edged higher.

Brent crude oil futures edged higher today, 20 May 2015, after witnessing sharp losses in previous session. Brent for July settlement was up 64 cents at $64.66 a barrel. The contract had fallen $2.25 a barrel or 3.39% to settle at $64.02 a barrel during previous trading session.

Crude oil prices edged higher from steep fall in the previous session as strong Japanese economic growth surprised markets and the consumer outlook in Australia seemed to brighten, stoking producer hopes of increased demand.

Lower crude oil prices could reduce 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.

PSU OMCs had announced hike in retail selling price of petrol and diesel on 15 May 2015. PSU OMCs had on 15 May 2015 raised retail selling price of petrol by Rs 3.13 a litre in Delhi (including state levies) with corresponding price revision in other states. With this change, the price of petrol in Delhi stands at Rs 66.29 a litre. The hike in price took effect from the midnight of 15/16 May 2015. PSU OMCs had also raised retail selling price of diesel by Rs 2.71 a litre in Delhi (including state levies) with corresponding price revision in other states.

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