OMC stocks tank over reports of proposed curbs on fuel pricing

Mumbai, Sep 13 (IANS): Stocks of three state-owned oil marketing companies (OMCs) tanked by as much as six per cent on Wednesday following reports that the government was mulling placing curbs on their newly acquired powers to determine transport fuel prices on a daily basis.

According to market observers, the slide in OMC scrips followed reports that the government proposed to curb the pricing powers of OMCs in view of the steep hike in the cost of petroleum products over the past almost three months, even though international crude oil prices have remained stable.

The selling pressure in OMCs' stock prices also dragged the benchmark indices -- BSE Sensex and NSE Nifty -- lower.

"Most Indian equity benchmarks declined as shares of oil marketers sold off on reports that the government may ask these companies to absorb fuel price increase," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"Oil marketing companies (OMCs) such as BPCL (Bharat Petroleum Corporation Ltd), HPCL (Hindustan Petroleum Corporation Limited) and IOC (Indian Oil Corporation Ltd) tanked as much as eight per cent following news reports that the OMCs may be told to absorb increase in oil prices due to inflation risks." 

Company-wise, BPCL scrips went down by 6.23 per cent to Rs 500.35 during the day's trade. The IOC scrip dipped 4.28 per cent to Rs 416.15 and that of HPCL was lower by 5.06 per cent to Rs 457.35.

Leave a Comment

Title : OMC stocks tank over reports of proposed curbs on fuel pricing


You have 2000 characters left.


Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will be held responsible.

Security Validation

Enter the characters in the image