OMC stocks: HPCL, BPCL, IOC slip up to 5% a day after crude oil jumps 4%

OMC stocks: HPCL, BPCL, IOC shares were under pressure in Thursday's trade as oil prices rose on fresh tensions scaling up in Middle East

Oil marketing companies (OMCs)--Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil Corporation (IOCL)--shares fell up to 4.8 per cent, in trade on Thursday, June 12, 2025. The selling pressure came a day after oil prices rose 4 per cent on heightened tensions in the Middle East. 

 

At 10:50 AM, HPCL shares were down 4.74 per cent at ₹395.05 per share, BPCl shares 3.19 per cent at ₹323.25 per share, and IOCL shares 1.48 per cent at ₹143 per share. In comparison, BSE Sensex was down 0.35 per cent at 82,227.21. 

How does the rise in crude oil prices affect OMCs?

Crude oil is the primary raw material for OMCs, which are involved in the distribution and sale of petroleum products, including gasoline, diesel, jet fuel, and heating oil. Thus, a rise in crude oil prices increases the input cost of OMCs. 

 

It also takes a toll on OMCs' margin, if retail price hikes are delayed or capped due to political or public concerns. 

Why did Brent crude oil shoot up 4 per cent?

On Wednesday, crude oil prices jumped 4 per cent to $69.77/bbl, after reportedly, US President Donald Trump said America was moving personnel because the Middle East "could be a dangerous place". 

 

Trump also stated that the United States would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Rising tensions with Iran have heightened concerns over potential disruptions to the oil supply.

 

The US is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East. Iraq is the second-biggest crude producer after Saudi Arabia in the Organisation of the Petroleum Exporting Countries.

 

Further, Trump has threatened Iran of bombing if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. 

 

Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict.

 

However, oil prices eased on Thursday. Last checked, Brent crude futures were down 0.4 per cent, to $69.47 a barrel, while US West Texas Intermediate crude was down 0.3 per cent, at $67.92 a barrel.