Indian Oil, HPCL and BPCL shares in focus as govt cuts excise duties on petrol, diesel 

Shares of oil marketing companies (OMCs) such as  Indian Oil, HPCL and BPCL are in news today after a Reuters report said government cut the special additional excise duties on petrol and diesel to Rs 3 litre and zero, respectively. 

Earlier, special additional excise duties on petrol stood at Rs 13 per litre and on petrol at Rs 10 per litre. 

According to reports, relief of duty cuts on petrol pump is highly unlikely since excise duty cuts will help OMCs lower their underrecoveries. This would reduce pressure on OMCs to raise petrol, diesel prices amid crude oil rates rising on the back of US -Iran war.  Currently, brent crude prices are trading at $100.85 per barrel.    

On March 26, Nayara Energy, India's largest private fuel retailer, raised petrol prices by Rs 5 per litre and diesel by Rs 3 a litre to absorb the impact of a surge in global oil prices following the war in the Middle East.

On Wednesday, shares of Indian Oil closed 1.63% higher at Rs 140.65 against the previous close of Rs 138.40. Market cap of the OMC stood at Rs 1.98 lakh crore. 

Stock market was shut on March 26 on account of Ram Navami. HPCL stock closed 2.18% higher at Rs 344.20 in the  previous session with the market cap rising to Rs 73,239 crore. 

BPCL shares too ended 0.83% higher at Rs 284.60 against the previous close of Rs 282.25. Market cap of the firm stood at Rs 1.23 lakh crore.