Shares of two state-run oil marketing companies rose 1.39% to 1.42% at 11:40 IST on BSE, after crude oil prices plunged nearly 3% on the New York Mercantile Exchange, on Wednesday, 9 December 2009.
Indian Oil Corporation (IOC) (up 1.39% to Rs 328.40) and Hindustan Petroleum Corporation (HPCL) (up 1.42% to Rs 408.50) edged higher. But, Bharat Petroleum Corporation (BPCL) declined 0.28% to Rs 634.60.
Meanwhile, the BSE Sensex was down 36.02 points, or 0.21%, to 17,089.20.
BPCL had outperformed the market over the past one month till 9 December 2009, rising 22.38% as compared to the Sensex's 3.80% rise. It had also outperformed the market in the past one quarter, gaining 13.11% as compared to the Sensex's return of 5.82%.
HPCL had outperformed the market over the past one month till 9 December 2009, rising 14.29% as compared to the Sensex's 3.80% rise. It had underperformed the market in the past one quarter, falling 0.46% as compared to the Sensex's return of 5.82%.
IOC had outperformed the market over the past one month till 9 December 2009, rising 5.44% as compared to the Sensex's 3.80% rise. It had underperformed the market in the past one quarter, rising 2.58% as compared to the Sensex's return of 5.82%.
Fall in crude oil prices will reduce under-recoveries of state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. Light, sweet crude oil declined $1.95 or 2.69% to $70.67 a barrel on the New York Mercantile Exchange on Wednesday, 9 December 2009, after US government data showed a big increase in distillate and gasoline stocks last week.
Oil extended losses, declining 15 cents, or 0.21%, to $70.52 a barrel in the Asian electronic trading on Thursday, 10 December 2009.
The US Energy Information Administration (EIA) on Tuesday, 8 December 2009 lowered its forecast for global oil demand next year, indicating a weaker recovery from leading consumers.
On 19 November 2009, Oil Secretary R.S. Pandey said the government has no immediate plan to raise fuel prices.
As per recent reports, Petroleum Ministry has sought oil bonds worth Rs 20,871 crore for state-run fuel retailers to make up for the losses incurred on selling domestic LPG and kerosene below cost during the first three quarters of this fiscal.
As per government estimates, the three fuel retailers IOC, BPCL and HPCL lost about Rs 26,618 crore in revenues on selling petrol, diesel, domestic LPG and kerosene below cost during the first half of the current fiscal
Earlier, in July 2009, the government had unexpectedly increased the price of petrol by Rs 4 a litre and diesel by Rs 2 a litre. It was the first increase in 2009, following a rise in the international price of crude oil and the increasing under-recovery of state-run oil marketing companies (OMCs) on domestic fuel sales at a control price.
Early last week, the state-owned oil-marketing firms cut jet fuel prices by 1.10% in step with marginal easing of crude rates.
Aviation Turbine Fuel (ATF) prices in Delhi decreased by Rs 454.61 to Rs 39,968.01 per kilolitre (kl). ATF prices in Mumbai decreased by Rs 473.55 to Rs 41,236.73 per kl. The jet fuel prices in Kolkata decreased by Rs 460.02 per kl to Rs 48,220.93 and in Chennai by Rs 488.70 to Rs 44,037.74 per kl.
The three state run OMCs revise jet fuel prices on the first and the 16th day of every month based on the average global oil price in the previous fortnight.
IOC reportedly aims to increase its Haldia refinery capacity by 25% to 150,000 barrels a day by mid-January 2010. IOC operates about 10 refineries across India with a total capacity of 1.204 million barrels per day. Haldia is IOC's only coastal refinery and caters to the demand of eastern India.
Late last month, IBV Brazil Petroleo, a joint venture between Bharat PetroResources and Videocon Industries discovered more crude oil in Brazil's offshore Campos basin. Bharat PetroResources is the upstream arm of BPCL.
