OMCs trade higher as govt hikes excise duty on petrol, diesel
Shares of oil marketing companies (OMCs) traded higher after government hiked excise duty on petrol and diesel by Rs 2 per litre each but there will be no change in retail prices as the increase will be adjusted against the price cut that was warranted because of falling international oil prices. The excise duty on petrol was hiked to Rs 13 per litre and that on diesel to Rs 10 a litre. The increase in duties is come into force on the April 08, 2025.
Hindustan Petroleum Corporation is currently trading at Rs. 369.25, up by 15.90 points or 4.50% from its previous closing of Rs. 353.35 on the BSE. The scrip opened at Rs. 360.45 and has touched a high and low of Rs. 371.65 and Rs. 353.25 respectively.
Bharat Petroleum Corporation is currently trading at Rs. 286.05, up by 11.65 points or 4.25% from its previous closing of Rs. 274.40 on the BSE. The scrip opened at Rs. 279.20 and has touched a high and low of Rs. 286.30 and Rs. 275.40 respectively.
Indian Oil Corporation is currently trading at Rs. 131.20, up by 2.85 points or 2.22% from its previous closing of Rs. 128.35 on the BSE. The scrip opened at Rs. 129.35 and has touched a high and low of Rs. 131.75 and Rs. 128.20 respectively.
International oil prices have slumped to their lowest since April 2021 as escalating trade tensions between the United States and China stoked fears of a recession that could cut oil demand. India is 85% dependent on imports to meet its oil needs.
The Modi government during its 11-year rule hiked excise duty whenever international oil prices fell. The government had between November 2014 and January 2016, raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices. In all, duty on petrol rate was hiked Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government’s excise mop-up more than double to Rs 2,42,000 crore in 2016-17, from Rs 99,000 crore in 2014-15.
