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.
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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.
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.