OMC Stocks Surged Up to 3% as LPG Prices Hiked and Excise Duty Raised By ₹2/Litre

Stocks to Watch Today, OMC News: Oil Marketing Companies (OMC) stocks rebounded in today’s session. These stocks include BPCL, HPCL, and IOCL, which rose by up to 3% on the Bombay Stock Exchange (BSE). The rebound of OMC stocks followed the announcement of two government policies: an LPG price hike and an increase in excise duty on petrol and diesel. 

This strategic move of the government aims to balance fiscal requirements when relaxing OMCs against international oil price volatility. However, the policies bring both upsides and challenges for state-owned refiners.

LPG Price Hiked By ₹50/Cylinder

As per the recent updates, the price of a 14.20 KG LPG cylinder has increased by ₹50 (from ₹803 to ₹853 per cylinder). For beneficiaries of PMUY (Pradhan Mantri Ujjwala Yojana), the cost of one LPG cylinder is now ₹653.

Revised prices are expected to reduce the under-recovery on LPG cylinders from ₹189 to ₹144. The policies may offer financial relief to OMCs, specifically when global energy dynamics are unassumable. 

Petrol & Diesel Excise Duty Hiked By ₹2/Litre

The revision of the LPG price comes with a raised excise duty on petrol and diesel by ₹2/litre. The oil minister claimed this additional burden would not be passed on to customers. Instead, OMCs will have to manage the extra cost burden. It would help the government maintain the stability of prices for end-users of petrol and diesel. 

Outlook of Brokerages 

• HSBC Global Research estimates a tangible impact on OMC’s profitability. According to them, an excise duty hike may shave off ₹31,200 cr, which would result in EPS reduction for IOC, BPCL, and HPCL. 
• Motilal Oswal Financial Services assumed a conservative ₹3.3/litre marketing margin for petrol and diesel. Whereas current realisations are above ₹10/litre, leaving room for managing the hike without major EPS downgrades.

What Experts Say?

Hike in LPG price and excise duty would bring high volatility. Experts believe that the government aims to create a fiscal headroom during uncertain times. They also caution that OMCs are unable to pass on future costs resulting from a rise in crude oil prices, INR depreciation, and global supply chain disruptions. 

Key Highlights

• OMC stocks gained up to 3%, reflecting short-term relief and confidence.
• This bounce back sustains will depend on how OMCs navigate tightening margins and earnings resilience.
• LPG price hikes and a rise in excise duty may help balance the fiscal needs. 

For live stock updates, dividend alerts, and expert verdicts, stay informed with Univest!

Disclaimer: Univest provides news articles on the stock market today for informational purposes only. You are advised not to construe them as investment advice. You must conduct your own research on the best stocks to watch today to invest safely. Also, you can try Univest Pro and Demat accounts for seamless investment and trading experiences.

Explore Other News Articles

IRFC Share Price Surged 2.57% Amid Dividend Buzz: Check Future Trends Here

IREDA Share Price Jumps 3.65% Attributed to Q4 Results: Will the Momentum Sustain?

Stocks to Watch Today: 8th April 2025: BEL, SOBHA, TITAGARH, HDFC, MARUTI & More!

Trent Share Price Plunged Over 19% Today After Disappointing Q4 Sales: What Should be the Next Move?

Tata Motors Tank by a Whopping 10% at Opening

Delhivery is to Acquire Ecom Express for Worth ₹1,407 crore | Major Consolidation in India’s Logistic Sector

Tata Motors Down by 5.93% at ₹615.15: Here is the Impact of CLSA Downgrade!

Suzlon Down By 4.47% at ₹54.91 | Check Latest Order Cancellations and Suzlon Stock Price Momentum Today!