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PSU OMCs trades lower on the buzz of petrol price cut

28 Jun 2012 Evaluate

PSU oil marketing companies were trading in red on the report that petrol prices may be reduced by as much as Rs 4 a litre from 1 July 2012 as international oil prices fell to their lowest level since December 2010.

Bharat Petroleum Corporation (BPCL) is currently trading at Rs. 747.00, down by 2.65 points or 0.35% from its previous closing of Rs. 749.65 on the BSE. The scrip opened at Rs. 747.85 and has touched a high and low of Rs. 749.85 and Rs. 746.00 respectively. So far 5201 shares were traded on the counter.

Hindustan Petroleum Corporation (HPCL) is currently trading at Rs. 332.45, down by 3.80 points or 1.13% from its previous closing of Rs. 336.25 on the BSE. The scrip opened at Rs. 336.00 and has touched a high and low of Rs. 336.00 and Rs. 332.10 respectively. So far 19238 shares were traded on the counter.

Indian Oil Corporation (IOC) is currently trading at Rs. 257.40, down by 1.20 points or 0.46% from its previous closing of Rs. 258.60 on the BSE. The scrip opened at Rs. 258.00 and has touched a high and low of Rs. 258.10 and Rs. 256.60 respectively. So far 6631 shares were traded on the counter.

Throwing a big respite for petrol consumers in India, the oil marketing companies are likely to reduce petrol prices by Rs 4/ litre from July 1 after the recent increase of Rs 7.54 a litre on May 23, the highest so far. Albeit each time one dollar depreciation the oil companies can cut down the petrol price by Rs. 0.34 a litre, every one rupee depreciation will raise the petrol prices by Rs 75-80 paise a litre.

The current crude oil price has slashed to $99 a barrel, but the oil companies will reduce the petrol prices only if crude prices continue to be steady and rupee does not fall any further against dollar.

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