Stocks Of OMCs Rise Over 3% As Fuel Price Hike Expected To Trim Losses

The stocks of oil marketing companies surged up to 3 percent on the bourses on Tuesday. The gains were led by an increase in fuel prices for the second time within five days.

The stock of Indian Oil Corporation, the largest oil marketing company in the country, surged up to 3.1 percent on Tuesday.

The stock opened 1.5 percent higher at Rs 133.85 compared to the previous close of Rs 131.85 apiece. The scrip climbed to Rs 135.95 apiece, which was 3.1 percent higher than the previous close.

Similarly, the stock of Bharat Petroleum Corporation opened 0.3 percent higher at Rs 281.70 compared to the previous close of Rs 280.85 apiece.

The stock increased by over 3 percent to its intraday high of Rs 289.55 apiece.

The stock of Hindustan Petroleum Corporation also opened higher at Rs 361.60 compared to the previous close of Rs 359.20 apiece and climbed up to Rs 371.25. This was 3.3 percent higher than the previous closing price.

The gains in the stocks of these companies were a result of an increase in the prices of petrol and diesel. While the price of petrol was hiked by 87 paise per litre, diesel prices were hiked by 91 paise per litre.

This is the second such hike in less than a week. Fuel prices were increased by Rs 3 per litre on Friday for the first time in about four years.

Stocks of oil marketing companies had faced losses on the bourses that day as investors were expecting a steeper hike in view of the massive losses incurred by the OMCs.

Further hikes in fuel prices are expected by market experts as companies are still facing losses. Oil Minister Hardeep Singh Puri had recently said that oil marketing companies were facing losses of over Rs 1,000 crore per day on the retail sale of petrol and diesel.