State-run oil marketing companies shares rose on Monday amid flat broader markets on the back of increase in retail fuel prices announced last night. Indian Oil Corp, the country’s largest oil marketer, was trading at Rs 335.3, up 1.36% from the previous close. Other two state-run oil marketing companies – Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd were also trading higher at Rs 490.7 (up 0.57%) and Rs 658.45 (0.12%) in the morning trade. Benchmark indices marginally recovered from early morning weakness. BSE Sensex was trading at 27,257.16 points, up 0.07%, and NSE Nifty regained the 8,400-mark at 8,409.1 points, up 0.1%.
Late last night, oil marketing companies raised petrol price by Rs 0.42/litre and diesel by Rs 1.03/litre, effective midnight, in line with rising global crude oil prices in trailing few weeks. Petrol will now cost Rs 71.14/litre in Delhi and diesel will cost Rs 59.02/litre taking into account additional impact of state taxes.
This is the fourth straight increase in prices of petrol and third straight increase in prices of diesel India since November-December, when global crude oil prices started rising on the talk of world’s major oil producers contemplating a cut in output. Price of Indian basket of crude oil has risen to $53.95/bbl from $53.05/bbl for the preceding fortnight. However, strengthening Indian rupee against the US dollar provides cushion to Indian buyers from rising global crude oil prices.
The cap on the recent rally in global crude oil prices may prompt Indian oil marketing companies to cut retail fuel prices in the following fortnights, provided current inventories stockpiled at higher prices do not weigh.
To know more about us or our services, kindly visit www.buildcaps.com
Buildcaps Management Services
