Oil Marketing Companies Face Pressure as Fuel Prices Increase
HPCL, BPCL, IOC shares in focus as petrol, diesel prices hiked by Rs 3/litre
The Economic Times
Image: The Economic Times
Shares of Hindustan Petroleum Corporation, Bharat Petroleum Corporation, and Indian Oil Corporation are under scrutiny following a ₹3 per litre hike in petrol and diesel prices. The price adjustments, driven by global energy disruptions, aim to alleviate financial strain on these companies amidst soaring oil prices, which remain above $100 per barrel.
- 01Petrol and diesel prices increased by ₹3 per litre across India.
- 02Kolkata saw the highest petrol price at ₹108.74 per litre.
- 03Oil prices remain elevated, with Brent crude at $107 and WTI crude at $102 per barrel.
- 04Prime Minister Modi urged citizens to conserve fuel and adopt responsible consumption practices.
- 05Concerns arise regarding how long oil companies can sustain losses from subsidized fuel prices.
Advertisement
In-Article Ad
Oil marketing companies, including Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and Indian Oil Corporation (IOC), have raised petrol and diesel prices by ₹3 per litre due to ongoing disruptions in the Strait of Hormuz, a critical shipping route for oil. Following the price hike, petrol in the national capital is now ₹97.77 per litre, while diesel costs ₹90.67 per litre. Kolkata recorded the highest petrol price increase among major cities, reaching ₹108.74 per litre. The price adjustments come amid soaring global oil prices, which recently surpassed $100 per barrel due to geopolitical tensions in the Middle East. Prime Minister Narendra Modi has called for energy conservation, urging citizens to adopt practices like using public transport and electric vehicles. Oil Minister Hardeep Singh Puri expressed concerns over the sustainability of current pricing strategies, questioning how long oil companies can absorb losses from selling fuel below market rates.
Advertisement
In-Article Ad
The increase in fuel prices will directly affect consumers, leading to higher transportation costs and potentially increased prices for goods and services.
Advertisement
In-Article Ad
Reader Poll
Do you support the government's approach to managing fuel prices?
Connecting to poll...
More about Hindustan Petroleum Corporation
Read the original article
Visit the source for the complete story.