PSU OMCs gain on drop in under-recovery on diesel sales

HPCL (up 0.98% at Rs 293.15), BPCL (up 0.74% at Rs 359.45), and Indian Oil Corporation (up 0.51% at Rs 268) edged higher.

Meanwhile, the BSE Sensex was up 118.83 points or 0.61% at 19,699.64.

HPCL had outperformed the market over the past one month till 1 January 2013, rising 1.31% compared with the Sensex's 1.25% rise. The scrip had, however, underperformed the market in past one quarter, sliding 7% as against Sensex's 4.02% gain.

BPCL had outperformed the market over the past one month till 1 January 2013, rising 2.66% compared with the Sensex's 1.25% rise. The scrip had, however, underperformed the market in past one quarter, rising 1.54% as against Sensex's 4.02% gain.

Indian Oil Corporation (IOC) had underperformed the market over the past one month till 1 January 2013, rising 1.23% compared with the Sensex's 1.25% rise. The scrip had, however, outperformed the market in past one quarter, jumping 5.56% as against Sensex's 4.02% gain.

The Ministry of Petroleum and Natural Gas after trading hours on Tuesday, 1 January 2013, said that the under-recovery on High Speed Diesel (HSD) applicable for the first fortnight of January 2013, effective 1 January 2013, has decreased to Rs 9.03 per litre from Rs 9.28 per litre for the 2nd fortnight of December 2012. In case of Domestic LPG, the under-recovery for January 2013 remains unchanged at Rs 490.50 cylinder. The Under-recovery on PDS Kerosene, too, has remained at same level of Rs 30.64 per litre for January 2013, the ministry said. PSU OMCs are currently (effective 01 January 2013) incurring daily under-recovery of about Rs 389 crore on the sale of Diesel, PDS Kerosene and Domestic LPG.

State-run oil marketing companies (PSU OMCs) suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

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