State-run oil marketing firms run out of fuel as crude hits record high

Shares of three state-run oil marketing companies slipped between 1.49% and 4.79% after the Indian crude basket hit all-time high of $97.16 a barrel on Friday, 29 February 2008.

Hindustan Petroleum Corporation slipped 1.49% to Rs 284.55, Bharat Petroleum Corporation lost 4.26% to Rs 447.50 and Indian Oil Corporation declined 4.79% to Rs 517 at 11:25 IST on BSE.

Hindustan Petroleum Corporation saw volumes of 64,055 shares, Bharat Petroleum Corporation witnessed volumes of 55,117 shares and 59,635 shares changed hands on the Indian Oil Corporation counter on BSE

The Indian crude oil basket averaged $92.37 a barrel in February 2008 against $89.52 in January 2008. On Friday, 29 February 2008, the price of New York crude touched a fresh high of $103.05 a barrel.

The soaring global crude prices have an impact on the profitability of the domestic oil marketing companies (OMCs), as they sell petroleum products below the cost price.

On 14 February 2008, the government announced hike in price of petrol by Rs 2 per litre and diesel by Re 1 per litre following a surge in global crude oil prices