From IOCL TO HPCL: How OMC Stocks Are Trading After Fuel Price Hike On May 15

OMC Stocks: After the diesel and petrol rates were increased, the shares of public sector undertaking (PSU) oil marketing companies (OMCs) such as HPCL, IOCL, and BPCL declined on Friday, May15.

The fuel price hike that elevated petrol, and diesel rates by Rs 3, respectively was seen lower than market expectations amid the ongoing crude oil crisis.

The shares of Hindustan Petroleum Corporation Ltd fell over 2% hit an intraday low of ₹367.10, while the Bharat  stock price declined 2% to ₹289.05. Meanwhile, IOCL declined 0.6% to its day’s low of ₹139.35.

At the time of writing this report, Brent crude traded close to $107 per barrel, while WTI crude traded at $102.4 per barrel.

On the other hand, US President Donald Trump fuelled market woes after stating to Fox News that he did not require the Strait of Hormuz to remain open amid rising tensions surrounding the West Asia region.

Also Read: After Petrol-Diesel Hike, CNG Prices Go Up By ₹2 As Iran Crisis Deepens

The state-run OMCs increased petrol and diesel prices by nearly ₹3 per litre after maintaining unchanged retail rates despite elevated global crude oil prices over the past several months. After this revision, petrol prices in Delhi rose to ₹97.77 per litre, while diesel prices increased to ₹90.67 per litre.

In Kolkata, petrol prices surged to ₹108.74 per litre from ₹105.45 earlier, while diesel prices rose to ₹95.13 per litre. In Chennai, petrol prices rose ₹103.67 per litre and diesel prices increased to ₹95.25 per litre.

Earlier this year, the Ministry of Finance had reduced excise duty on petrol and diesel by ₹10 per litre on March 27. This had to a "Rs 14,000 crore" monthly pressure on the central government, as per Sujata Sharma, Joint Secretary at Ministry of Petroleum and Natural Gas (MoPNG).

Further, she stated that the under recovery for OMC's when it comes to petrol, diesel, and LPG stands at Rs 30,000 crore in a month.