OMCs cheer no tax roll back

BPCL jumped up 5% to Rs.525 the moment it opened for trading; HPCL rose almost 4.5% to Rs.47.45 and IOC too rose 4.5% to Rs.434.60.

These downstream oil marketing companies are all up as the Govt very categorically ruled out any tax roll back due to spiking fuel prices. The price of petrol and diesel are at a three-year high and the Govt has blamed it on international crude oil prices for the increase.

From 16th June onwards, fuel prices have been fully deregurlarised, with day-to-day price changes linked to the international crude price movements. Prior to that, prices were revised every fortnight.

This benefits the OMCs as it means that their margins are not affected despite international price hike.