Oil Stocks Today: HPCL, BPCL, IOCL Rally After Export Duty Revision

Shares of oil marketing companies (OMCs) rallied in early trade on November 2 after the government revised export duties on petrol, diesel and aviation turbine fuel (ATF) for the fortnight starting October 31.

Hindustan Petroleum Corporation (HPCL) shares rose 2.40 per cent to Rs 347.65 at 9:32 AM. Bharat Petroleum Corporation (BPCL) gained 2.30 per cent to Rs 290.85, while Indian Oil Corporation (IOCL) advanced 3.15 per cent to Rs 134.10.

The government increased the export duty on diesel, including the Special Additional Excise Duty (SAED) and cess, to Rs 11.50 per litre from Rs 8.50 per litre. The export duty on ATF was raised to Rs 11 per litre from Rs 10.50 per litre.

However, the government reduced the export duty on petrol to nil from Rs 2.50 per litre, offering some relief to refiners exporting the fuel.

Higher duties on diesel and ATF could weigh on export realisations and refining margins, while the removal of the petrol export duty could partly offset the pressure.

The windfall tax is intended to ensure adequate fuel supplies in the domestic market and prevent companies from making excessive profits when global oil prices rise. Investors will watch how the revised duties affect the refining margins and profitability of OMCs in the coming weeks.

Crude Oil Prices Soften

Crude oil prices declined as Iranian and Qatari officials continued discussions for the third consecutive day, seeking an agreement to end the US-Israeli war on Iran, which began in February this year.

Brent crude futures fell $3.62, or 3.20 per cent, to $109.80 a barrel, while US West Texas Intermediate (WTI) crude declined $3.36, or 3.23 per cent, to $100.80 a barrel.

Brent crude had ended October at its highest level in six months amid concerns that the US-Iran conflict could escalate following Tuesday's US midterm elections.

Shares of other crude-sensitive companies also gained in early trade. Chennai Petroleum rose 2.28 per cent, while Petronet LNG gained up to 3 per cent. ONGC advanced 1.53 per cent, while Aegis Logistics and Aegis Vopak Terminals rallied up to 4 per cent each.

Reliance Industries (RIL) shares jumped over 6.50 per cent after the company reported its highest-ever quarterly profit for the July-September quarter (Q2 FY27), lifting the benchmark indices.

The Sensex was trading 1,000 points, or 1.34 per cent, higher at 75,465.40, while the Nifty 50 gained 270 points, or 1.20 per cent, to 23,325.35.

Reliance Industries Reports Record Quarterly Profit

Reliance Industries reported a record consolidated profit after tax (PAT) of Rs 29,550 crore for Q2 FY27, up 33.8 per cent from Rs 22,092 crore in the corresponding quarter last year. Growth in its oil-to-chemicals (O2C) business, supported by stronger global fuel margins, and its telecom business helped offset relatively subdued performance in retail.

Net profit attributable to the company's owners rose 40 per cent to Rs 25,548 crore.

Consolidated revenue increased 27.8 per cent year-on-year to Rs 3,62,268 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 23.9 per cent to a record Rs 62,409 crore.