Indian Oil, HPCL, BPCL Shares Rise After Premium Petrol Price Hike The prices of premium petrol—BPCL’s Speed, HPCL’s Power, and IOCL’s XP95—were increased by ₹2.09 to ₹2.35 per litre, while regular petrol prices remained unchanged. This price adjustment led to a surge in shares of India’s oil marketing companies, Indian Oil, HPCL, and BPCL, which rose up to 3.5% on the day. The move followed an announcement by ANI, citing the price hike for premium fuels. The state-owned oil companies have been absorbing the rising costs of crude oil, which have spiked due to tensions with Iran. According to Elara Securities, every $10 increase in crude oil prices reduces their margins by ₹6.3 per litre of petrol and diesel sold. This financial strain has prompted discussions about the government’s ability to shield consumers from price hikes. The government has a buffer in the form of excise duty—₹19.9 per litre for petrol and ₹15.8 per litre for diesel. Experts suggest that excise duty cuts of up to $110 per barrel of crude could fully offset rising fuel costs. However, the government has not yet announced any plans to reduce excise duty, leaving the oil companies to bear the brunt of the increased costs. The recent premium petrol price hike aims to partially offset the impact of higher crude oil prices, but analysts note that this measure alone cannot fully address the financial challenges faced by the sector. The situation highlights the complex interplay between global oil markets, domestic pricing strategies, and government policy in managing fuel costs for consumers.#hpcl #bpcl #indian_oil #ani #elara_securities
