Shares of oil marketing companies tumbled in intra-day trade on Wednesday on a possible price hike absorption request by the government. As part of the diktat, these companies may be asked to absorb a hike of Rs.1 per litre to pass on maximum benefit to consumers.

The development came in early in the morning which was then declined by most oil companies including HPCL, IOC. In a statement IOC said, "Not got any instruction from Govt to absorb oil price hike".

Later, HPCL also rubbished any such directive by the government and the company's Chairman and MD Surana said that as of today oil companies are free to hike prices. Also, he reiterated oil companies' demand of a better taxation regime to support its customers.

Share prices of HPCL were down 7.62% at Rs. 337/share, IOC was down 6.27% at Rs. 168.05, BPCL was down over 7% at Rs. 419.

The rising crude oil price which is trading over $70 per barrel today has hit the pockets of Indian consumers with petrol and diesel surging to new-highs. While petrol has crossed Rs. 80 per litre in some cities, diesel has touched a price of Rs. 70 per litre.

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