For Quick Alerts
For Daily Alerts

OMC Stocks Tumble By Over 25% After Absorbing Rs. 1/Litre In Fuel Price Cut


Oil Marketing Companies (OMCs) were dragged lower in opening session by 20-25% after the government pitched in to check rising fuel prices and announced a cut of Rs. 2.5 per litre on both diesel and petrol. Of this amount, OMCs have been asked to absorb Rs.1 per litre and this is likely to dent their net profit figure by Rs. 9000 crore.

OMC Stocks Tumble 25% After Absorbing Rs. 1/Litre In Fuel Price Cut

Indian Oil recouped early opening losses after reaching 52-week low of Rs. 105.65 and quoted at Rs. 121.20, down 13.95%, BPCL was down by 18.78% and quoted at Rs. 273.20 after sinking to 52-week low of Rs. 239. Meanwhile, Hindustan Petroleum also quoted lower at Rs. 173, down by 21.58%.

Excise duty of Rs. 1.5 has been cut amid surging fuel prices and also state governments have been asked to slash VAT on auto fuel by Rs. 2.5. The announcement has brought some relief to consumers at a time when fuel prices hit record highs across India.

The pricing formula used by oil retailers includes 80% of import price and the rest 20% export price of the fuel. Further, other components that include excise duty, VAT and dealer commission are added.

Meanwhile, the benchmark index Sensex again lost 0.96% or 338 points and Nifty traded below 10500 ahead of the monetary policy outcome.

Read more about: indian oil hpcl bpcl excise duty
Story first published: Friday, October 5, 2018, 10:39 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more