OMC's surge as crude falls

By Research Desk
about 10 years ago

OMC companies like HPCL, BPCL and IOC are doing very today in an otherwise lackluster market. HPCL leads the pack, up almost 4.5% at Rs.508.10, a new 52-week high. BPCL is up 3% at Rs.669.75. IOC is up over 4% at Rs.372.

These stocks are cheering as brent crude has now slipped to $90.85/barrel, down over $1.2/barrel. This in turn means that subsidy burden of these companies will come down substantially. In fact they are today making a profit of Rs.1.90 per litre on diesel for the period of Oct 1-15. Under-recovery on kerosene and LPG stood at Rs.156 crore.