HPCL, BPCL, and IOC Stocks Fall Up to 2.6% Amid ₹3/litre Fuel Price Hike

State-Run Oil Marketing Companies See Share Decline Despite Petrol and Diesel Price Hike

Shares of Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), and Indian Oil Corporation (IOCL) declined on Friday, despite petrol and diesel prices being raised across the country for the first time in more than two years. The price hike was seen as lower than market expectations, amid the continued surge in global crude oil prices.

On the Bombay Stock Exchange (BSE), HPCL shares fell 2.65% to hit an intraday low of ₹367.10, while BPCL declined 2% to ₹289.05. IOCL slipped 0.6% to its day's low of ₹139.35. The decision to increase petrol and diesel prices by ₹3 a litre and CNG by ₹2 a kg indicates that the government is playing it safe through small increases, perhaps stage by stage, without triggering a sharp spike in cost-push inflation.

Global crude oil prices continued to climb sharply, keeping concerns around fuel marketing margins elevated. Brent crude traded close to $107 per barrel, with futures gaining nearly 6% so far this week. West Texas Intermediate crude remained above $102 per barrel. The public sector fuel retailers increased petrol and diesel prices by around ₹3 per litre after maintaining unchanged retail rates despite elevated global crude oil prices over the past several months.

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Petrol and Diesel Price Hike Across Major Cities

The government said state-owned oil marketing companies had been absorbing significant losses because domestic fuel prices were not revised despite the sharp rise in global crude oil prices following the escalation of the West Asia conflict. According to official estimates, OMCs were losing nearly ₹20 per litre on petrol sales and around ₹100 per litre on diesel sales, though some industry estimates suggested diesel under-recoveries were lower. The Centre had repeatedly highlighted that Indian consumers were shielded from the steep fuel price increases witnessed globally, even as neighbouring countries such as Pakistan, Nepal, and Sri Lanka saw higher retail fuel rates.