OMC stocks hail oil price hike
Oil Marketing Companies' stocks are trading up in the morning session on BSE after fuel retailers raised petrol prices by about 2.7% or 1.50 a litre and diesel by about 1% or 0.45p a litre from Friday midnight due to rising global crude prices. HPCL, BPCL and Indian Oil are all trading up currently
OMCs stocks are trading up in the morning session on BSE after fuel retailers raised petrol prices by about 2.7% or 1.50 a litre and diesel by about 1% or 0.45p a litre from Friday midnight due to rising global crude prices. HPCL, BPCL and Indian Oil are all trading up currently
Hindustan Petroleum Corporation Limited (HPCL) is up 1.42% currently trading at Rs. 314.50 in the morning session on BSE. The stock hit a high of Rs. 318.40 and a low of Rs. 313.30. Total traded quantity stood at 0.80 lakhs.
Bharat Petroleum Corporation Ltd. is up 1.08 % currently trading at Rs. 384.25 in the morning session on BSE. The stock hit a high of Rs. 391.40 and a low of Rs. 383.15. Total traded quantity stood at 0.68lakhs.
Indian Oil Corporation Ltd. is up 0.5 % currently trading at Rs. 316.85 in the morning session on BSE. The stock hit a high of Rs. 324.40 and a low of Rs. 317.10. Total traded quantity stood at 0.38 lakhs.
Oil Marketing Companies (OMCs) decided to hike Diesel prices by 45paise and petrol by 1.50 with effect from Friday midnight. The increase in rates came after the government decided to give oil firms freedom to raise diesel prices in parts over a period of time to limit the losses of OMCs on the fuel.
Petrol prices have been hiked to peg it with international oil rates while OMCs have utilized the recent decision of the oil ministry, of partial deregulation of petrol prices, for a second price adjustment in one month. The actual increase in prices would be more after applying local sales tax and VAT. Oil prices in the Delhi region is set to go up by almost Rs.1.80 per litre after applying 19% VAT while Diesel are set to go up by 51 paise.
Earlier on 17 January, Minister of Petroleum and Natural Gas Veerappa Moily allowed Public sector Oil Marketing Companies (OMCs) to raise diesel prices over a period of time until companies are able to cover the Rs.9.60 per litre loss they incur on fuel. The move translates into partial deregulation of diesel prices. Moily gave the green signal to companies to proceed with the move by as early as tonight.
The move, a set time frame for implementation of which is not provided, will relieve the exchequer of a mammoth subsidy bill and the oil companies that run losses to the tune of Rs.940bn on subsidized fuel. The government deregulated petrol prices long time back but was jittery of freeing diesel prices owing to its affect on Inflation.
PM Manmohan Singh led Cabinet Committee on Political Affairs (CCPA) met and authorized the OMCs to periodically raise the diesel prices in small quantum to cover up the Rs. 9.60 paise per litre loss which they bore. Earlier Kelkar Committee made recommendations which the Oil Ministry proposed for being cleared by the cabinet.
Moily also declared that the cap on the cylinders be raised to 9 per household in a year from the earlier 6. “I am happy to inform the CCPA has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders. Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum,’’ he said emerging from the cabinet meeting
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