Shares of three public sector oil marketing companies rose 1.28% to 2.04% on reports state-run oil marketing firms may hike petrol prices after 10 May 2011 when the state polls end.
BPCL (up 2.04%), HPCL (up 1.36%) and Indian Oil Corporation (IOC) (up 1.28%), rose.
The BSE Sensex was down 144.12 points or 0.74% at 19,440.19.
According to reports, state-run oil marketing companies (PSU OMCs) could hike petrol prices by up to Rs. 3 per litre and the hike could be announced on 15 May 2011 during the fortnightly review of prices.
PSU OMCs have the freedom to revise petrol price in tandem with international crude. But the government, which holds majority stake in the companies, had reportedly told them to hold the price line since January in view of the state polls.
Ranbir Singh Butola, chairman of IOC, was quoted by media as saying that IOC was losing Rs. 18.11 per litre on diesel, Rs. 28.33 a litre on kerosene and Rs. 315.86 per cooking gas cylinder. Butola said IOC was losing money on petrol but declined to put a number to it since the fuel was deregulated and the company was not supposed to get compensation from the government for keeping pump prices artificially low.
A hike in petrol prices will boost the finances of state-run firms since crude oil prices have soared to above $110 per barrel in the international market. US crude futures were down $1.12 or 1% at $111.16 a barrel today, 26 April 2011.
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