Shares of public sector oil marketing companies (OMC) are up for the second straight day amid growing speculation of a fuel price hike post the assembly elections.
Reports are pointing to an increase of up to Rs 5 per litre in diesel as well as petrol next week.
The EGoM on oil prices will meet on May 11, according to reports. It could also consider an increase in LPG prices.
The BSE Oil & Gas index is trading higher at 9,869, up 86 points or 0.8% over the previous close. It had earlier touched a day's high of 9,878 and opened at the day's low of 9,792.
The breadth within the Oil & Gas index is positive with 8 shares rising and 1 share declining.
BPCL, GAIL, HPCL, IOC, Oil India and ONGC were up over 1%, while Petronet and RIL were up 0.6% and 0.7% respectively.
Cairn India was the sole loser in the Oil & Gas space with the scrip down over 1%.