See 25% upside in BPCL, HPCL, IOC: Antique Stock Broking

The Empowered Group of Ministers (EGoM), on Firday, increased diesel prices by Rs 3 per litre. This has given a fillip to oil marketing companies.

In an interview with CNBC-TV18, Amit Rustagi, Oil & Gas Analyst, Antique Stock Broking said by taking measures like duty cuts, increasing the prices the government has been able to reduce the overall under-recoveries by roughly Rs 80,000 crore. Rustagi further said BPCL, HPCL and IOC can see 25% upside, even from the current levels. He is also bullish on ONGC and MRPL. Also read: IOC may reduce petrol price if crude falls, says Chairman Below is the transcript of his interview with CNBC-TV18's Udayan Mukherjee. Also watch the accompanying video. Q: How would you approach the oil marketing companies now? A: If I look at the entire sector, by taking measures like duty cuts, increasing the prices, the government has been able to reduce the overall under-recoveries by roughly Rs 80,000 crore. Now if I assume a USD 105 per barrel of Brent for the rest of the year, then we look at a number of only Rs 1 lakh crore in terms of under-recoveries. We were looking at roughly Rs 1,80,000 crore a day before the announcement. So, overall, the under-recoveries in the system have come down significantly. Particularly for oil marketing companies, if oil prices trend downwards from here, they will be making profits in petrol as well as diesel. If oil averages at roughly USD 90-95 per barrel then diesel there will be no under recovery per se. We don