Oil marketing companies led the gains on Dalal Street after the latest round of fuel price hikes, with BPCL emerging as the top performer during the session. The stock climbed as much as 3.21 per cent to hit an intraday high of Rs 289.80, followed by HPCL, which rose 2.91 per cent to a high of Rs 369.35, and IOC, which advanced 2.90 per cent to touch Rs 135 apiece.
The rally in OMC stocks came after petrol and diesel prices were increased across the country for the second time in less than a week. In Delhi, petrol prices were raised by 87 paise to Rs 98.64 per litre from Rs 97.77, while diesel prices went up by 91 paise to Rs 91.58 per litre from Rs 90.67. The back-to-back hikes have lifted investor sentiment around state-run oil companies, which tend to benefit from improved marketing margins when retail price adjustments are allowed.
Among the pack, BPCL saw strong buying interest through the session, gaining Rs 7.55 to trade around Rs 288.35, while IOC added Rs 2.87 to trade at Rs 134.68. HPCL too moved higher by Rs 7.55 to Rs 366.45. as of 10:15 AM.
An earlier Rs 3-per-litre increase in petrol and diesel prices has helped state-run oil marketing companies trim daily losses by nearly a quarter, reducing overall losses to around Rs 750 crore per day from Rs 1,000 crore, PTI reported quoting a senior oil ministry official on Monday.
The fuel price increase – the first in more than four years – comes after a sharp rally in oil prices, following the Iran conflict disrupting flows through the Strait of Hormuz, pushing up costs for oil marketing companies (OMCs) and increasing pressure on government finances.
The fuel price revision coincides with a sharp surge in global crude oil prices. Brent crude, which averaged USD 68.23 per barrel in 2025, has risen significantly in 2026. Starting the year at USD 60.85 per barrel, Brent prices have climbed to around USD 110 per barrel, marking a steep increase of nearly 80 per cent so far this year. This rally has exerted considerable pressure on domestic fuel pricing.
The rise in petrol and diesel prices is expected to have broader economic implications. Fuel costs directly impact inflation, with petrol and diesel accounting for roughly 5 per cent of India’s Consumer Price Index (CPI) basket. Higher prices typically feed into transportation costs, leading to increased prices of goods and services. Sectorally, the impact is likely to be mixed. Oil marketing companies such as HPCL, BPCL, and IOCL may benefit from improved marketing margins and reduced under-recoveries.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
