Moneycontrol Bureau
Investors are lapping up shares of oil market companies (OMCs) on the back of petrol and diesel price hike announced on Friday. Shares of BPCL, HPCL, IOC and ONGC jumped around 2 percent each in early trade on Monday.
Petrol price was hiked by 75 paise and diesel by 50 paise a litre as rise in global oil rates and fall in rupee value increased the cost of production. Post the increase, petrol now costs Rs 72.43 a litre in Delhi, up 91 paise from Rs 71.52. The price of diesel in Delhi is be hiked to Rs 54.34 per litre, while it will cost Rs 61.42 a litre in Mumbai as against Rs 60.80 currently.
According to IOC even after the increase since last January the oil companies are incurring Rs 9.24 per litre loss on sale of the fuel.
Besides diesel, the state-owned oil firms are losing Rs 37.33 a litre on sale of kerosene through public distribution system (PDS) and Rs 762.50 per 14.2-kg domestic cooking gas (LPG) cylinder. "For the (financial) year 2013-14, IOC is expected to incur under-recovery (revenue loss) of Rs 74,700 crore on sale of three sensitive products," the statement said, adding that the industry would end the year with Rs 1,44,800 crore loss. The movement of prices in the international oil market and the exchange rate are being closely monitored and developing trends of the market will be reflected in future price changes, IOC added.
At 09:38 hrs BPCL was at Rs 331.40, up Rs 2.25, or 0.68 percent, HPCL was at Rs 228.80, up Rs 1.40, or 0.62 percent, Indian Oil Corporation was at Rs 203.60, up Rs 0.30, or 0.15 percent while ONGC was at Rs 280.40, up Rs 4.60, or 1.67 percent on the BSE.
(With inputs from PTI)
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