Petrol, diesel price hike, oil price fall impact: HPCL shares lead OMC rally, jump 6%; BPCL, IOC gain 4-5%

OMC stocks: Shares of Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation Ltd (IOC) climbed up to 6 per cent on Monday, as petrol and diesel price hikes were hiked for the fourth time in 10 days. The three stocks also gained, as crude global oil prices fell sharply on hopes a likely US-Iran deal in near future.  

Petrol price was hiked up by Rs 2.61 per litre and diesel by Rs 2.71 in the latest revision, easing concerns over marketing losses that oil marketing companies (OMCs) are making on auto fuel. OMC stocks also gained amid a sharp fall in crude oil prices globally. 

HPCL, which is seen as most sensitive among three OMCs due to its higher retail marketing exposure relative to refining capacity, soared 5.86 per cent to hit a high of Rs 412.55.

BPCL shares rose 4.55 per cent to hit a high of Rs 309 on BSE. "The BPCL stock price has fallen 20 per cent in the past three months, underperforming the Nifty Index, which was down 7 per cent, led by concerns on crude spike, retail diesel & gasoline margin erosion, liquid petroleum gas (LPG) under-recovery, and delayed monetization of large projects. While Q4FY26 earnings were bolstered by strong refining and inventory gains, weak retail margin and supply volatility could drive a sharp earnings trough in FY27. Q1FY27 would be challenging," Elara said  while suggesting a target of Rs 326 on the stock. 

IOC advanced 4.15 per cent to Rs 145.30.     

Following the fresh revision, petrol costs Rs 102.12 per litre in Delhi. Diesel price now stands at Rs 95.20 per litre. In the financial capital Mumbai, petrol prices stood at Rs 111.21 and diesel at Rs 97.83.

Meanwhile, Brent oil futures for August delivery tanked 5.52 per cent to $94.68 a barrel. 

Reports suggested Iran was ready to surrender enriched uranium as part of US proposed peace deal. The Prime Minister of Israel, Benjamin Netanyahu, in a X post said he spoke with Trump about the memorandum of understanding to reopen the Straits of Hormuz and the upcoming negotiations toward a final agreement on Iran’s nuclear program.

Jefferies in its GREED & fear last week said a deal can be done with Tehran in five seconds if all US sanctions are removed and Iran’s assets are unfrozen. 

"Cooling crude prices are a key positive for OMCs," Tata Mutual Fund said in a note. 

OMC stocks are currently trading below their 20-year average P/E and P/B ratios, suggesting limited downside, Tata Mutual Fund said in its "Sector Speak – Q4 FY26” report.