OMC shares drop after excise duty on petrol, diesel raised

Shares of three listed state-owned oil marketing companies (OMC) fell up to 4 per cent at close today, after the government raised excise duty on petrol by Rs 2.25 per litre and by Re 1 a litre on diesel.
Bharat Petroleum Corporation fell by 4.06 per cent to close at Rs 712.90, while shares of Indian Oil Corporation fell by 2.55 per cent to Rs 351.20 on the BSE.
Shares of Hindustan Petroleum Corporation Ltd lost 1.60 per cent to Rs 594.
The government today raised excise duty on petrol by Rs 2.25 per litre and by Re 1 a litre on diesel but retail pump rates will not be increased as oil firms decided to absorb the duty change for the time being.

The second excise duty hike in three weeks will help raise additional Rs 4,000 crore in four months to March as the government seeks to take advantage of a slump in world oil prices to shore up its revenues without stoking inflation.
Together with Rs 1.50 a litre excise duty hike effected from November 12, the government will mop up about Rs 10,000 crore in reminder of current fiscal that will help contain budget deficit.