PSU OMCs tumble as crude oil prices rise

Shares of the state-run oil marketing companies dropped by 6.08%to 7.24% at 12:17 IST on BSE after yesterday's rally pushed Brent crude above the $70 per barrel mark.

HPCL (down 7.24% to Rs 338.35), BPCL (down 6.38% to Rs 422.20) and Indian Oil Corporation (down 6.08% to Rs 168.40) slumped.

Meanwhile, the S&P BSE Sensex was down 15.25 points or 0.05% at 33,865.

In the global commodities markets, Brent for June 2018 settlement was down 31 cents at $70.73 a barrel. The contract surged $2.39 a barrel or 3.48% to settle at $71.04 a barrel during the previous trading session. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

 

State-run oil marketing companies were also under pressure on reports the government has asked these companies not to hike fuel price and absorb up to Re 1 per litre rise in fuel prices.

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