Shares of state-owned oil marketing companies such as Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum were up 1-3% each gained in an otherwise weak market as global crude oil prices dropped to fresh 51/2 year lows today.
Lower crude oil prices would help reduce the under-recoveries on sale of subsidised cooking fuels such as kerosene and LPG gas for domestic use.
However, the weakness in crude oil prices is likely to be offset because of the sharp fall in the rupee which has dropped to over 13-month low and is currently trading around Rs 63.35 to the US dollar.
Meanwhile, Indian Oil Corporation Ltd on Monday announced a Rs 2 per litre cut in petrol and diesel prices here, effective from Monday night. Petrol would cost Rs 61 a litre and diesel Rs 50.51 a litre.
