OMCs dip as govt may ask them to hold fuel price hike
Oil marketing companies (OMCs) were trailing on the bourses on Wednesday following news reports that government has asked them to absorb the recent spurt in international crude oil prices.
The rise in crude oil prices have impacted domestic fuel prices. To reduce the burden of rising fuel prices on end consumers, government is mulling over plans to asks OMCs to absorb every Rs. 1 per litre increase in petrol and diesel prices, suggest news reports. Anticipating this move, companies like HPCL, BPCL, Indian Oil took a hit in early trading hours on Wednesday.
Globally, crude oil prices are heating up due to rising geopolitical tensions in the Middle East. The oil prices have increased by almost by 5 per cent in the first 10 days of this month and are currently trading at US$70.75 per barrel. This has excited the stocks of oil exploring companies which gained during early hours of trade.
Oil marketing companies opened negative on the bourses. BPCL was trading at Rs. 421 per share down by 6.6 per cent, HPCL was trading down by 7 per cent at Rs. 339 per share and Indian Oil also lost 6.1 per cent and trading at Rs. 168.3 per share