OMC (Oil Marketing Companies) witnessed a downfall of upto 8% on Friday’s trading session after the announcement of reduction in prices of petrol and diesel. The day after the announcement of a Rs 2 per litre reduction in prices of petrol and diesel has seen shares of the oil marketing companies decline by up to 8%.
The above comes after the government lifted the freeze on retail prices of petrol and diesel as the rates were last revised in April 2022 in anticipation of its likely schedule release with the next Lok Sabha elections 2024 . With effect from Friday, March 15, prices of petrol and diesel would reduce by ₹2 per litre in all states . The fuel price reduction follows last week’s ₹100 cut in cooking gas or LPG rates and for the free connection cylinders under the Ujjwala scheme.
The reduction in prices for petrol and diesel due to the impending model code of conduct is much anticipated after nearly two years. At the same time, OMC’s and downstream companies led the decline.
Hindustan Petroleum Corporation lost the most: it fell by almost 8% to the day’s minimum of Rs 461.10 to the NSE. The almost following Bharat Petroleum Corporation dropped by 5.4% to the day’s minimum of Rs 576.
The shares IPC-driven Indian Oil Corporation also fell by 6.75% to ₹158.80. A sharp decline in the shares of OMCs reflects concerns or fears of a significant reduction in their income due to a price cut.
