BPCL hit a new low today at Rs.330; HPCL too was at a new low at Rs.233.50 and IOC was also at a new low at Rs.146.
The oil marketing companies (OMCs) are the first ones to bear the brunt of the falling rupee. With the rupee falling today too by another 13 paise to Rs.72.90/dollar, the OMCs are going through some jitters. Though they are passing on the increasing burden to the consumers every single day, analysts say that consistent price hike could dent the margins.
The falling rupee for OMCs is always a worry because their working capital requirement would be increased as all their crude purchases are done in US dollar. Add to this, the interest burden on US dollar-denominated loans which would pile up with forex losses in the P&L.