Shares of oil marketing companies (OMCs) such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) are likely to remain in focus in trade tomorrow, August 1, after the companies announced a downward revision in the prices of 19 kg commercial LPG gas cylinders.
Effective August 1, the price of a commercial LPG cylinder has been cut by ₹33.50, bringing the retail sale price in Delhi to ₹1,631.50. The price revision applies across cities, with similar cuts expected in other metro markets as well.
No change in domestic LPG cylinder price
The prices of 14.2 kg domestic LPG cylinders, which are widely used in households across the country, remain unchanged, according to a statement by oil marketing companies. The last revision in domestic LPG prices took place earlier this year.
Sectoral impact
While commercial LPG price revisions are a regular monthly practice, the cut is notable as it follows a recent easing of global LPG benchmarks. The move is expected to provide relief to commercial establishments, including restaurants, hotels, and small businesses that rely on bulk LPG.
OMC margins could be impacted marginally, but the price cut also reflects a normalisation in global energy prices, which could be a net positive for refining and distribution players in the medium term.
Stocks to watch:
- IOC, BPCL, HPCL on price adjustment
