InvestorQ : Why were the oil market companies like IOCL and BPCL strong on 08 June?
indhumathi Sayani made post

Why were the oil market companies like IOCL and BPCL strong on 08 June?

Answer
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shrinidhi Rajan answered.
3 months ago


OMCs did well on Monday after the petrol and diesel prices were hiked by Rs.0.60 per litre for the second consecutive day. This coincided with Unlock 1.0 as people were allowed to take out their cars and go to their offices. Daily price revision had been kept on hold for close to 3 months due to the COVID-19 impact. Some 3 months back, the government had frozen fuel prices after excise duties had been hiked by Rs.3 per litre on petrol and diesel. IOCL was up 4.5% while BPCL was up by 6.58%. Unlock 1.0 is expected to revive fuel sales owing to resumption of economic activities. The downstream companies will benefit as the price hike is passed on to the end customer so it does not impact their financials. With OPEC withdrawing nearly 10% of the global supply, the prices are likely to remain buoyant in the international crude market and that will impact the landed price of petrol and diesel.