OMCs tank as govt raises excise duty on petrol, diesel; HPCL, BPCL dip 10%

Shares of oil advertising and marketing businesses (OMCs) were being buying and selling deep in the purple on Wednesday, a working day following the Centre announced one particular of the steepest hikes in responsibilities on petrol and diesel in the current earlier, by raising it by Rs ten and Rs thirteen for each litre, respectively, in a notification issued late on Tuesday.

At 09:23 am, Hindustan Petroleum Corporation (HPCL) was locked in the ten for each cent decreased circuit at Rs 193.twenty apiece on the BSE. Bharat Petroleum Corporation (BPCL), also, was buying and selling in excess of 9 for each cent decreased at Rs 314.eighty five. It strike a very low of Rs 312.15, down ten for each cent in opposition to Tuesday’s close of Rs 346.80. Indian Oil Corporation (IOC) was down nearly six for each cent at Rs 74.twenty. In comparison, the S&P BSE Sensex was buying and selling 113 details or .36 for each cent decreased at 31,340.71 levels.

The federal government on Tuesday said that the Street and infrastructure cess was hiked by Rs 8 for petrol and diesel and the specific further excise duty (SAED) was hiked by Rs 2 for each litre and Rs five for each litre, respectively. Although the road cess will only go into the Centre’s coffers, the hike on account of SAED will be handed on to states through devolution at 42 for each cent. That’s why, the states will get only Rs .eighty four for each litre in case of petrol and Rs 2.1 in case of diesel. Read Extra

Retail price ranges, even so, will see no transform as the price tag hike will be absorbed by oil advertising and marketing businesses in opposition to the fall in crude price ranges.

The choice will come following numerous states greater the worth-added tax (VAT) on petrol and diesel building use of the decreased price tag routine. The Delhi federal government on Tuesday greater VAT on petrol and diesel to thirty for each cent each individual, from 27 and 16.seventy five, respectively. As a end result, the price tag of petrol in Delhi greater by Rs 1.67 to Rs 71.26 a litre and diesel by Rs seven.ten to Rs sixty nine.29 in Delhi on Tuesday.