- Shares of Bharat Petroleum, Indian Oil, and Hindustan Petroleum rose over 2.8% after fuel price hikes
- HPCL led gains with 4%, BPCL up 3.1%, and IOC rose nearly 2.8% in Monday trade
- Fuel prices increased by an average of Rs 2.7 per litre for petrol and diesel on Monday
Shares of oil marketing companies such as Bharat Petroleum, Indian Oil Corporation and Hindustan Petroleum are rallying in trade on Monday, on the back of a fuel price hike announced earlier in the morning.
All the three stocks are trading with gains of 3% or more, with HPCL being the largest gainer at 4%. BPCL has gained 3.1% in trade, followed by IOC with a gain of almost 2.8%.
The positive momentum in these OMCs can be directly linked to an average price hike of Rs 2.7 per litre for petrol and diesel announced early Monday morning. This was the fourth time these companies have resorted to fuel price hikes in the span of 11 days.
Fuel price hikes are seen as key pivots by OMCs to cut back on heavy losses incurred since the start of the Iran War. With crude prices constantly averaging above the $105 per barrel mark, they have had to bear the cost in order to keep fuel prices steady in India, with Petroleum Minister Hardeep Singh Puri pointed towards losses of around Rs 1,000 crore daily.
Thanks to the four fuel hikes, however, OMCs have been able to cut back on 44% of the losses, according to various analyst estimates, which is adding to the positive sentiment around these stocks.
ALSO READ: Fuel Price Hike: BPCL, HPCL And IOC Now Able To Cut Back On Almost Half The Losses
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