Thursday, May 24, 2012

OMC gain on a record petrol price hike

Shares of government-owned oil marketing companies have rallied moree than 3% each on the bourses, after these companies have raised the price of petrol by a record Rs 6.28 a litre from Wednesday midnight.

Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation are trading higher 4-5% in opening deals on the National Stock Exchange. Oil and Natural Gas Corporation, Gas Authority of India and Oil India too, have rallied more than 3% each.

The increase was necessitated by their rising under-recoveries and a weakening rupee, the companies said. Prior to this, the steepest hike in absolute terms was done last May, when the price rose by Rs 5.

Meanwhile, a hike for diesel, kerosene and domestic LPG would be decided on by an empowered group of ministers headed by Finance Minister Pranab Mukherjee in its next meeting, the date of which has not been decided yet, the report suggests.

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