HPCL up 6% on hopes to sell bulk buyers diesel at mkt price

Oil marketing companies that have been facing losses due to selling oil at lower than market rate may be able to trim losses or may turn into profits soon. Government sources told NewsWire18 that oil companies may be allowed to sell diesel to bulk buyers at market rate.

Sources say cement, mine and power companies may need to buy diesel at market rate. Oil companies may revise diesel price for bulk buyers fortnightly, sources add. Government sources also say diesel bulk sale by companies at market rate may cut subsidy burden by Rs 12,900 crore. Oil companies' diesel sales to bulk buyers stands at 17.8 percent of total. Oil retailer HPCL gained 4.46 percent to Rs 337.25 (rallied more than 6 percent intraday) while IOC was up 2.4 percent to Rs 287.60 and BPCL rose 1 percent to Rs 384.40. ONGC was up 1.12 percent to Rs 293.35.