OMCs are among the top five losers on the BSE currently. HPCL is the top loser, down over 6% at Rs.254.25, followed by Chennai Petroleum at 188.90, down 3%. BPCL is down over 6.2% at Rs.383.25.
The reason? The Houthi attacks on the facilities of Saudi’s Aramco facilities sending panic across the globe of a supply disruption. This has led to oil prices soaring $20/barrel yesterday night and when oil prices rise, it is the OMCs that get affected directly.
Petrol and diesel prices are directly linked to international crude rates but as of now, the price at which fuel is sold at the pumps is same as what was in August. rices are still lower than what was in mid-July.
For more details on this: https://www.sptulsian.com/f/cf/oil-prices-explode-as-aramco-gets-droned