• Source:JND

Oil Stocks Today: Post a fresh hike in fuel prices was announced, the shares of oil marketing companies soared in intraday trade on Monday. Petrol and diesel prices have been increased by Rs 2.61-Rs 2.71 per litre, respectively, for the fourth time in less than two weeks as state-run fuel retailers passed on rising international oil prices to consumers.

With the latest revision, petrol and diesel prices have gone up by nearly Rs 7.5 per litre since fuel price revisions began on May 15.

Oil Marketing stocks

HPCL Share Price: The shares of HPCL surged nearly 6 per cent in early trade, hitting a day high at Rs 412.55 on NSE. Last seen, the stock was trading at Rs 403.65, up Rs 14 or 3.59 per cent.

BPCL Share Price: Shares of Bharat Petroleum Corporation Ltd (BPCL) climbed over 4.5 per cent to a high of Rs 309 on NSE. At the time of writing, the stock was trading at Rs 307.05, up Rs 11.45 and 3.87, respectively.

Also Read: Despite Rs 7.5/Litre Hike, Oil PSUs Still Grapple With Losses; Are More Price Increases Expected?

IOC Share Price: Indian Oil Corporation (IOC) shares rallied over 4 per cent to a high of Rs 145.30 on NSE. Last seen, the stock was trading at Rs 144.47, up Rs 5.01 or 3.59 per cent.

Petrol Diesel Price Hike

Petrol prices have been increased by Rs 2.61 per litre and diesel by Rs 2.71 per litre. State-owned Oil Corporation of India, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited together control 90 per cent of India's fuel market.

Will There Be More Price Hikes Ahead?

Considering the scenario, the recent price hike has reduced oil companies' daily losses, but not completely eliminated them. According to analysts, every 50 paise increase in fuel marketing margins improves oil companies' earnings before interest, taxes, and depreciation by approximately 7 to 11 per cent. This is why even a small increase in fuel prices significantly boosts companies' profits.

Also Read: Stock Market Rallies On Sharp Correction In Crude Prices, Sensex Settles 1,073 Points Higher

According to industry estimates, when crude oil prices were at their peak, these companies were collectively incurring losses of approximately Rs 1,600 crore per day.

Therefore, a few more rounds of price hikes would not be a surprising move.


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