IOC, HPCL, BPCL gain on hike in fuel price

NEW DELHI: Shares of state-owned oil marketing companies such as - IOC, HPCL, and BPCL surged upto 4 per cent each in intraday trade on Monday after these companies increased the retail price of petrol by Rs 3.13 a litre and diesel by Rs 2.71 a litre citing sharp increase in international prices.

HPCL gained as much as 4.47 per cent while IOC gained as much as 2.18 per cent and BPCL surged as much as 3.08 per cent in intraday trade on Monday.

HPCL ended the day in green, up 3.93 per cent while IOC ended the day at Rs 345, up 2.65 per cent. BPCL ended the day 3.31 per cent higher.

The price increase comes into effect from May 16. This is the second increase in retail fuel prices in a fortnight. Petrol prices have been increased by Rs 7.09 and diesel by Rs 5.08 in May so far, ET reported.

With the price increase, petrol will be sold in Delhi at Rs 66.29 a litre and diesel will be sold at Rs 52.28 to retail consumers, added the report.

The state run-oil marketing companies-- Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation- change the price of fuel sold at retail pumps every fortnight to align it with the international rates.

The exchange rate plays a major role in determining retail prices of fuels since India imports 80% of crude oil it processes and pays in US dollar.