PSU OMCs nudge higher after Govt slashes excise duty

Shares of three public sector oil marketing companies edged higher at 11:01 IST on BSE after the government reduced basic excise duty rate on both branded and unbranded petrol and diesel by Rs 2 per litre.

HPCL (up 2.15% at Rs 442.55), IOCL (up 0.92% at Rs 410.45) and BPCL (up 0.67% at Rs 481.45) edged higher.

Meanwhile, the S&P BSE Sensex was up 140.18 points or 0.45% at 31,637.56.

To cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on retail sale prices of petrol and diesel, the government has reduced basic excise duty rate on both branded and unbranded petrol and diesel by Rs 2 per litre with effect from 4 October 2017.

The revenue loss on account of these reductions in excise duty is about Rs 26000 crore in a full year, and about Rs 13000 crore during the remaining part of the current financial year, a statement released by the Central Board of Excise and Customs (CBEC) said.

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