Shares of IOC, BPCL and HPCL tanked up to 8 per cent on Wednesday as investors feared the government may ask oil marketing companies to halt rise in fuel prices and instead bear the losses on margins. IOC dipped 5.72 per cent to Rs 152.30. BPCL and HPCL dropped 6.82 per cent and 8.5 per cent to Rs 370.20 and Rs 285.55, respectively during the day. 

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Oil explorers such as ONGC and OIL India also dipped up to 3 per cent after Moody’s Investors Service said they face increasing risk that govt will require them to share fuel-subsidy burden as oil prices rise. 

The companies have not contributed to fuel subsidies since June 2015, but had paid for over 40 per cent of the annual subsidy bill in previous years, Moody's said. 

Oil marketing companies such as Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have shared less than 1 per cent of total fuel subsidies since FY2012, and it is unlikely that proportion of such costs will rise, Moody’s added. 

HPCL and BPCL were the leading losers on the Nifty index. Meanwhile, the Sensex shed over 150 points to trade below 34,500, while the broader Nifty50 dipped 70 points to trade below $10,500.  

Petrol and diesel prices are on a high with the OMCs rising the prices for the 10th straight day. Petrol and diesel prices have been hitting lifetime highs on daily basis. Petrol prices touched a new high of Rs 84.99 per litre in Mumbai and Rs 77.17 in Delhi. Diesel prices rose to Rs 72.76 per litre in Mumbai and 68.34 in Delhi today.