Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ Markets / Stock Markets/  OMC stocks off highs after Russia bans petrol exports for 6 months; IOC, HPCL down 3%
BackBack

OMC stocks off highs after Russia bans petrol exports for 6 months; IOC, HPCL down 3%

Russia on Tuesday ordered a six-month ban on gasoline exports from March 1 to keep prices stable amid rising demand from consumers and farmers.

Indian oil petrol pump. Photo: Pradeep Gaur/MintPremium
Indian oil petrol pump. Photo: Pradeep Gaur/Mint

Shares of oil marketing companies (OMCs) lost around three per cent earlier today after Russia announced a ban on petrol exports for the next six months. Shares of Indian Oil Corporation (IOC), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd (HPCL) traded lower after hitting back-to-back record highs in the last few weeks on lower international crude oil prices.

India has been one of Russia's biggest buyers of crude oil in 2023. Russia was India's largest oil supplier in 2023, accounting for around 30 per cent of imports. The monthly tally peaked at 1.99 million barrels in July 2023. 

However, the purchases have declined recently, falling to about 1.29 million barrels a day last month. Over one-third of India's export of oil products to the G7-led coalition countries was derived from Russian crude.

Also Read: OPEC+ to support Brent at $80/bbl; ONGC/Oil India placed well on dividend pay, valuations

Russia bans petrol exports for 6 months from March 1

Russia on Tuesday ordered a six-month ban on gasoline exports from March 1 to keep prices stable amid rising demand from consumers and farmers and to allow for maintenance of refineries in the world's second largest oil exporter.

The ban, first reported by Russia's RBC, was confirmed by a spokeswoman for Deputy Prime Minister Alexander Novak, President Vladimir Putin's point man for Russia's vast energy sector, according to news agency Reuters.

Russian Prime Minister Mikhail Mishustin had approved the ban after Novak proposed it in a letter dated February 21, Reuters said citing RBC. "In order to offset excessive demand for petroleum products, it is necessary to take measures to help stabilize prices in the domestic market," Novak was quoted as saying in his proposal by RBC.

Domestic petrol prices are sensitive for motorists and farmers in the world's biggest wheat exporter ahead of the March 15-17 presidential election, while some Russian refineries have been hit by Ukrainian drone attacks in recent months.

OMC stocks today

Shares of IOC, BPLC, and HPCL settled lower on Tuesday, after losing around two-three per cent each during the session. On Tuesday, shares of HPCL opened at 543.20 and shed 3.71 per cent to hit a day's low of 523, before closing 2.24 per cent lower at 529.65 apiece on the BSE.

Shares of IOC also declined 3.06 per cent to hit an intra day low of 172.10. Shares opened at 177.55 and settled 2.45 per cent lower at 173.25 apiece on the BSE. BPCL also ended flat-to-negative at 624.85 apiece on the BSE.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Feb 2024, 05:33 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App