Oil marketing firms gain on price hike hope

Oil marketing firms gain on price hike hope

Shares of three state-run oil marketing firms rose between 2.28% to 4.76% at 11:19 IST on BSE, ahead of a meeting of a Cabinet committee later in the day to consider fuel price hike.

Hindustan Petroleum Corporation surged 4.55% to Rs 271, Bharat Petroleum Corporation advanced 2.28% to Rs 429.75 and Indian Oil Corporation gained 4.76% to Rs 494.

Meanwhile, BSE Sensex was up 578.68 points or 3.41% to 17,527.78, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy.

Hindustan Petroleum Corporation saw volumes of 60,393 shares, while Bharat Petroleum Corporation and Indian Oil Corporation witnessed volumes of 12,711 shares and 47,719 shares respectively on BSE

As per reports, the Cabinet Committee on Political Affairs (CCPA), headed by prime minister Manmohan Singh may raise petrol price by Rs 2 a litre and diesel by Re 1 a litre today, 14 February 2008. However, the Left-allies of the United Progressive Alliance (UPA) government is against any price hike and it is likely to oppose any move of the government to increase prices of sensitive petroleum products, specially diesel, kerosene and cooking gas.

Public sector oil marketing companies (OMCs) are currently losing Rs 9.2 per litre on petrol, Rs 10.94 per litre diesel, Rs 331.34 per cylinder on domestic LPG and Rs 19.89 per litre on kerosene.

Presently, 42.7% of the OMCs under-realisation is met by the government through issuance of oil bonds. The government may not increase this percentage, reports added. Collectively public sector oil companies' under-recoveries amount is estimated to be Rs 71,800 crore in year ending March 2008.

Hindustan Petroleum Corporation (HPCL) reported net loss of Rs 15.73 crore in Q3 December 2007 as compared to net profit of Rs 407.31 crore in Q3 December 2006. Net sales 22.4% to Rs 27,117.01 crore in Q3 December 2007 over Q3 December 2006.

Bharat Petroleum Corporation (BPCL) reported 4% fall in net profit to Rs 291.30 crore on 19.50% rise in net sales to Rs 28928.40 crore in Q3 December 2007 over Q3 December 2006.

Indian Oil Corporation reported 16.70% rise in net profit to Rs 2090.69 crore on 15.10% rise in net sales to Rs 64058.53 crore in Q3 December 2007 over Q3 December 2006.