State-run OMC stocks remain under pressure after Centre’s move to cut LPG rates
After market hours on Tuesday, the government announced the reduction in the retail prices of cooking gas cylinders in a bid to mitigate the impact of rising inflation on households.
State-run oil marketing companies’ shares remained under pressure on Thursday, after the Cabinet approved a reduction of Rs 200 per cylinder in the prices of LPG in a big relief for the country’s households. Indian Oil Corporation Ltd (IOCL) shares fell as much as 1.4 per cent in morning deals on Thursday, while the Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) stocks dropped 2.7 per cent and two per cent, respectively, after the three scrips registered losses to the tune of 1-2 per cent the previous day.
After market hours on Tuesday, the government announced the reduction in the retail prices of cooking gas cylinders in a bid to mitigate the impact of rising inflation on households.
According to a report by news agency PTI, bumper earnings in the first five months of the current fiscal year and international crude oil benchmarks coming off their highs will help state-owned oil companies absorb the Rs 200 per cylinder cut in cooking gas rates.
The three PSU oil marketing companies are likely to continue a trend of bumper earnings following a strong show in the the April-June period, according to the report.
The Saudi CP oil benchmark–or the oil price to which domestic LPG rates are benchmarked– declined from $732 per tonne in March 2023 to $385 in July. Rates have gone up in August to $464 per tonne but still provide enough cushion for oil companies to cut LPG prices, according to the report.
Also Read: LPG cylinder price slashed by Rs 200/cylinder; check out city-wise rates here
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
11:49 AM IST