OMCs incur losses on petrol, diesel sales as Brent rises to $91/bbl
Oil marketing companies (OMCs) including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPLC) and Hindustan Petroleum Corp Ltd (HPCL) saw a downgrade in their July-September quarter (Q2) growth outlook after international crude oil prices sharply rose above $91 per barrel. Domestic brokerage firm Kotak Institutional Equities has ‘reduced’ their ratings on all three OMC stocks and has said that the companies have incurred losses over petrol and diesel sales with frozen retail prices and high crude oil rates.
Additionally, shares of auto and oil refineries and marketing firms declined on Tuesday, September 12, in the backdrop of suggestions on the need to levy an additional 10 per cent tax on diesel-run vehicles to help cut emissions.
Union Road Transport and Highways Minister Nitin Gadkari said there was a need to levy an additional 10 per cent tax on diesel-run vehicles to help cut emissions, but later clarified that there was no proposal under government consideration to impose such a tax.
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Updated: 12 Sep 2023, 10:09 PM IST
