Oil firms fall on bourses on delay in fuel price hike

Shares of Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) reversed their gains on Friday, dropping by up to 3.3 per cent after Petroleum Minister S Jaipal Reddy said there are no immediate proposals to raise fuel prices, including petrol.

Shares of the companies pared initial gains amid heavy selling following the comment.

BPCL plunged 3.37 per cent to Rs 336.10 before closing the day at Rs 344.50 - down 0.88 per cent. HPCL went down by 3.18 per cent before ending the day down 1.94 per cent at Rs 302.90 on the Bombay Stock Exchange. IOC slumped 1.94 per cent to Rs 242.50 but closed the day 0.12 per cent higher at Rs 247.60.



There are indications that the government may hike petrol, diesel, cooking gas and kerosene prices simultaneously as early as next week, with Reddy saying earlier on Friday that "difficult and painful" decisions need to be taken.

"There are no immediate proposals to raise prices of various oil products, including petrol," he added.

The oil ministry is pushing for raising rates as oil firms are losing a record Rs 560 crore per day on sale of regulated diesel and cooking fuels and another Rs 16 a day on petrol.

With inputs from PTI