Shares of oil marketing companies rally more than three per cent

Shares of oil marketing companies (OMCs), including HPCL, ended higher on Tuesday after petrol and diesel prices were raised by about 90 paise per litre — the second increase in less than a week.

The stock of Hindustan Petroleum Corporation Ltd climbed 3.27 per cent, Indian Oil Corporation edged higher by 2.39 per cent, and Bharat Petroleum Corporation Ltd went up by 2.03 per cent on the BSE.

Petrol and diesel prices were raised about 90 paise per litre on Tuesday — the second increase in less than a week — as state-run fuel retailers moved to narrow mounting losses triggered by a sharp surge in global crude oil prices following the Iran conflict.

Petrol price in New Delhi rose to Rs 98.64 per litre from Rs 97.77, while diesel rate increased to Rs 91.58 from Rs 90.67 a litre, according to industry sources.

The latest increase follows a Rs 3-per-litre hike on Friday — the first fuel price revision in more than four years.

The back-to-back increases come after global crude oil prices surged more than 50 per cent since late February following US-Israeli strikes on Iran and disruptions to shipments through the Strait of Hormuz, a critical global oil transit route.

Petroleum Ministry’s Joint Secretary Sujata Sharma said on Monday that the May 15 increase reduced losses by about a fourth, but state-run oil firms were still losing around Rs 750 crore per day.