BPCL, HPCL, IOCL Share Prices Increase, Nifty Oil And Gas Up Nearly 3 Per Cent - Know Why

BPCL, IOCL, HPCL Share Price: Shares of domestic Oil Marketing Companies (OMCs) such as Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd gained up to 4 per cent on the NSE on April 8. The stocks gained following an announcement by the government to hike excise duties.

HPCL, BPCL, IOCL Share Price Rises

Hindustan Petroleum Corporation Ltd gained 4.3 per cent to trade at an intraday high of Rs 368 apiece on the NSE. On the other hand, shares of Bharat Petroleum Corporation Ltd gained 3.63 per cent to hit an intraday high of Rs 283.65 apiece, and shares of Indian Oil Corporation Ltd gained 2.26 per cent to trade at an intraday high of Rs 130.99 apiece on the NSE.

Shares of OMCs gained as the move is expected to potentially increase the revenue of state-owned oil marketing companies as global crude prices decline. Additionally, the hike is also likely to make up for the Rs 41,338 crore loss incurred by IOCL, BPCL and HPCL for selling LPG at subsidised rates.

On April 7, the government announced a Rs 2 per litre increase in excise duty on petrol and diesel. Additionally the government also announced a Rs 50 increase for the prices of LPG cylinders. The hike came into effect today April 8, factoring in the hike the excise duty applicable on petrol is now Rs 13 per litre and that on diesel to Rs 10 per litre.

Nifty Oil and Gas Index Gains

The Nifty Oil and Gas index gained nearly 3 per cent to hit an intraday high level of 10,112.15 as 13 constituents of the index advanced and two declined. Notably all three state-owned companies are a part of the Nifty Oil and Gas index.

Shares of IOCL, BPCL and HPCL hold 8.02 per cent, 9.07 per cent and 5.82 per cent weightage in the index respectively. Collectively the shares of these three oil marketing companies make up 22.91 per cent weightage of the index. Shares of BPCL and HPCL emerged as the top gainers among the constituents of the index before the market closed.

Have Petrol And Diesel Rates Increased?

Despite the excise hike, the price rise will not be passed on to customers, according to a post on social media platform X by the Ministry of Petroleum and Natural Gas.

“PSU Oil Marketing Companies have informed that there will be no increase in retail prices of Petrol and Diesel, subsequent to the increase effected in Excise Duty Rates today," the ministry said.

Petroleum and Natural Gas Minister, Hardeep Singh Puri also said at a press conference on April 7 that the increase in costs on account of the excise hike will not be passed on to the consumer.

“You would have seen a notification from the Ministry of Finance saying that the excise rates are going up by Rs 2 on petrol and diesel. Let me clarify upfront on the record, this will not be passed on to the consumer," Puri said.

LPG Prices Hiked

While the excise duty on cooking gas or LPG has not been increased, the government has allowed OMCs to adjust prices in the segment to meet their revenue needs. The Rs 50 hike in LPG cylinder prices is expected to shrink the gap between the subsidised retail price and LPG rates in international markets.

According to a report by CNBC which cited sources familiar with the matter state owned OMCs are likely to recover nearly Rs 9,000 crore in FY26 through the Rs 50 hike.

At the time of writing shares of Hindustan Petroleum Corporation Ltd traded higher by 3.43 per cent at Rs 364.9 apiece. At the same time, shares of Bharat Petroleum Corporation Ltd traded at Rs 282.8 apiece up by 3.32 per cent and shares of Indian Oil Corporation Ltd traded at Rs 131.5 apiece on the NSE up by 2.66 per cent.