BackShares of oil marketing companies give up gains
Shares of HPCL, IOC and BPCL rose as much as 1.8%, 1.96% and 1.6%, respectively, in intra-day trade
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Mumbai: Shares of state-run oil marketing companies (OMCs) gave up the gains posted after international crude prices touched a four-year low.
Brent crude prices, the world benchmark for oil, touched $88.11 per barrel, lowest since 1 December 2010, as rising supply and a weakening global economic outlook stretched the slump in oil prices, Reuters reported.
Shares of Hindustan Petroleum Corp. Ltd (HPCL) shed 0.67% to ₹ 508.15 apiece, Indian Oil Corp. Ltd (IOC) fell 0.86% to ₹ 375.30, while Bharat Petroleum Corp. Ltd (BPCL) declined 0.17% to ₹ 670.35.
Earlier in the trade the scrips rose as much as 1.8%, 1.96% and 1.6%, respectively.
Lower crude oil prices will decrease under-recoveries of public sector OMCs on domestic sale of LPG and kerosene at government-controlled prices.
The Indian government, on 1 October, had said oil marketing companies were making gains of ₹ 1.90 per litre on diesel for the period of 1-15 October. During the same period, under-recovery on kerosene and LPG stood at ₹ 156 crore.
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