BPCL, HPCL, IOC shares jumped up to 5% today; here's why

Shares of Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) climbed up to 5 per cent in Monday's trade as there was no announcement regarding excise duty hike on petrol and diesel in the Union Budget 2026. A few brokerages had anticipated high probability of the same. 

HPCL climbed 4.39 per cent to Rs 450.60. BPCL advanced 4.75 per cent to Rs 366.05. IOC advanced 2.78 per cent to Rs 164.25. 

"No changes have been made to excise duty levied on gasoline & diesel retail sales. Government budgeted Rs 30,000 crore (Rs 12,500 crore in FY26 and Rs 17,500 crore in FY27) for past under-recoveries on liquid petroleum gas (LPG). It also allocated Rs 12,800 crore LPG subsidy for poor households," Elara Securities said.

It sees No incremental earnings impact on oil marketing companies (OMC).

"There is no amount mentioned for FY26 burden which could come at a later stage," YES Securities said as it called the development neutral to OMCs. 

HDFC Securities said the government has allocated Rs 1,500  crore for Direct Benefit Transfer on LPG  for FY27E against Rs 1,000 crore for FY26RE, which is positive for OMCs. The budgeted capex of Ministry of  Petroleum increased to Rs 30,443  crore from the previous year's revised 
budget of Rs 29,800 crore.  This reflects the reduction in capital  assistance to OMCs, HDFC Securities said.

Meanwhile, The government is planning to allocate Rs 9,200 crore for FY27 against Rs 12,736 crore  for FY26RE for LPG connection to poor  households. The allocation cut by 28 per cent on LPG  connection compared to the previous year is negative for the OMC, HDFC Securities said. 

YES Securities called it 'neutral' for OMCs.