New Delhi: Share prices of state-owned oil marketing companies such as Indian Oil (IOC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) rallied on Monday as international crude oil prices fell for the second day from its recent highs easing concerns of a possible subsidy sharing burden on these companies, analysts say.
As of 10:45 am, IOC was trading 4.86 per cent higher at Rs 171.40, HPCL was up 5.4 per cent at Rs 311.10 while BPCL shares traded 5.28 per cent higher at Rs 400.65 apiece.
International Brent crude futures, which touched $80 per barrel mark last week is trading near $75 on Monday. As per reports, the government was evaluating options to ask oil marketing companies to freeze fuel prices as a temporary arrangement.
It may be noted that petrol, diesel prices were hiked for the 15th straight day on Monday. After today’s revision, petrol is retailing at Rs 78.27 per litre in the national capital Delhi, Rs 86.08 in Mumbai, Rs 80.91 in Kolkata and Rs 81.26 in Chennai.
The continuous increase in fuel prices has become a cause of concern for both the citizens and the government as it would push up inflation and current account deficit. India imports nearly 80 per cent of its fuel requirement.
Market participants were expecting some measures from the government on Friday to check rising retail fuel prices. But nothing of such materialised. After two straight day’s of correction in crude oil prices, government may not ask OMCs to freeze prices, analysts say.