Diesel price hike lifts oil firms' stock by up to 6.5%

Shares of three oil marketing companies - BPCL, HPCL and IOC - today rose by as much as 6.5 per cent after diesel prices were hiked by 50 paise a litre.

Stock of Bharat Petroleum Corporation Ltd surged 6.41 per cent to close at Rs 555, while Hindustan Petroleum Corporation Ltd ended 5.59 per cent higher at Rs 423.30 on the BSE.

Similarly, Indian Oil Corporation's scrip rose by 0.76 per cent to Rs 363.60.

Diesel prices were on Saturday hiked by 50 paise a litre, excluding state levies.

The announcement of the hike gave clear indications to investors that the BJP government will continue with reforms of the previous Congress regime.
 

The UPA had in January 2013 decided to raise diesel prices in small doses of up to 50 paise every month till such time that the subsidy on nation's most consumed fuel is eliminated.