BPCL, HPCL and other OMC stocks rally up to 5% as crude falls below $70/bbl

Shares of oil marketing companies (OMCs) such as Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL), and Indian Oil Corporation (IOC) surged up to 5% after crude oil prices fell below $70 following Iran’s missile strikes on U.S. military bases in Qatar.

HPCL shares led the gains, rising 5% to an intraday high of Rs 413.25 on the BSE, followed by BPCL, which climbed 4.5% to Rs 327.70. IOC shares also advanced, gaining 3.5% to Rs 145.30.

Oil prices plunged nearly 6% on Monday after Iran retaliated against American airstrikes on its nuclear sites by targeting a U.S. airbase in Qatar.


The sharp drop reflects the market’s reaction to Iran’s measured response—a military move that avoided disrupting global oil supplies. Analysts believe Iran may be signalling strength without escalating the conflict further, at least for now.

Oil prices dropped primarily because Iran refrained from targeting oil infrastructure or key transportation routes—most notably the Strait of Hormuz, a vital artery for global crude shipments.

Over the weekend, U.S. President Donald Trump authorised airstrikes on three Iranian nuclear sites, sharply escalating regional tensions. In response, Iranian state media reported a missile attack on a U.S. base in Qatar, mirroring the number of bombs dropped by the U.S. and signalling a “bomb-for-bomb” approach.

Impact on OMCs

A decline in crude oil prices typically benefits oil marketing companies (OMCs) such as BPCL, HPCL, and IOC, as crude is their primary raw material. Lower prices reduce input costs, making it cheaper to refine and produce fuel.

When retail prices of petrol and diesel are not cut in line with falling crude prices, OMCs enjoy wider marketing margins, boosting profitability.

Additionally, lower crude prices ease import bills and working capital requirements, improving cash flows. If OMCs hold inventory purchased at lower prices, they may also realise inventory gains when refined products are sold at prevailing higher rates.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)