Summary of this article
HPCL, BPCL and IOCL shares gained after fuel prices were hiked again within a week
Nifty Oil & Gas index rebounded, led by OMCs, gas distributors
Crude oil prices fell after Trump delayed a planned strike on Iran
Shares of oil marketing companies such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOCL), and Bharat Petroleum Corporation (BPCL) rose in early trade on May 19 after petrol and diesel prices were increased by nearly a rupee per litre. This is the second hike in less than a week. The government has raised fuel prices to recover losses caused by high global crude oil prices.
After the latest increase, petrol in Delhi now costs Rs 98.64 per litre, up from Rs 97.77, while diesel is priced at Rs 91.58 per litre, up from Rs 90.67. This comes just days after fuel prices were increased by Rs 3 per litre on May 15 due to rising global crude oil prices, driven by tensions in West Asia and disruptions around the Strait of Hormuz, an important shipping route which carries more than one fifth of the global crude oil demand.
Petrol And Diesel Prices In Metro Cities
| City | Petrol Price (Rs/litre) | Petrol Change (Paise) | Diesel Price (Rs/litre) | Diesel Change (Paise) |
| Delhi | 98.64 | 0.87 | 91.58 | 0.91 |
| Kolkata | 109.7 | 0.96 | 96.07 | 0.94 |
| Mumbai | 107.59 | 0.91 | 94.08 | 0.94 |
| Chennai | 104.49 | 0.82 | 96.11 | 0.86 |
Nifty Oil & Gas Index Gains After Two Consecutive Days Of Losses
Nifty Oil & Gas index gained as much as 0.85 per cent so far during the session. This comes after two consecutive days of decline. As of 10:00 AM, HPCL's and BPCL's share prices rose more than 2.50 per share, while IOCL's share price also gained over 2 per cent.
Index heavyweight Reliance Industries gained around half a per cent. Chennai Petroleum Corporation (CPCL), a subsidiary of IOCL and supplier of various petroleum products, was also up by 0.75 per cent.
Meanwhile, gains were led by city gas distributors such as Indraprastha Gas (IGL) and Adani Total Gas (ATGL), both of which rose more than 3.50 per cent, while Mahanagar Gas (MGL) was up by over 1 per cent. Petronet LNG, India’s premier liquefied natural gas (LNG) importer which handles nearly three-fourth of the nation's LNG imports, was also up by 1 per cent.
On the other hand, the country's leading natural gas company GAIL was down by 1.50 per cent, the biggest drag on the oil & gas index. Oil exploration companies ONGC and Indian Oil were down by around half a per cent each.
Crude-Sensitive Stocks Also Gain
Aviation stocks were also upbeat as InterGlobe Aviation, which operates IndiGo airlines, surged as much as 1 per cent, while SpiceJet jumped nearly 5 per cent in early trade. Paint companies such as Asian Paints was up by about 1 per cent.
Consumer-facing companies related to petroleum-based raw materials were also trading higher. Eternal, the parent company of Zomato, was up nearly 2.50 per cent, and Swiggy, its rival, was up by 1.50 per cent.
Crude Oil Prices Ease After Trump Delays Strike On Iran
Crude oil prices fell more than 2 per cent in early Asian trading on May 19, after investors saw signs of easing tensions between the United States and Iran. Market sentiment improved after US President Donald Trump said he had delayed a planned military strike on Iran to allow more time for negotiations aimed at ending the conflict in the West Asia.
At 11:00 AM, the international benchmark Brent crude oil futures was down by 1.50 per cent at $110.42 a barrel, while the US benchmark West Texas Intermediate (WTI) crude oil futures was down by over 1 per cent at $103.36 per barrel.
Frequently Asked Questions
1. Why did HPCL, BPCL and IOCL shares rise on May 19?
HPCL, BPCL and IOCL shares gained after petrol and diesel prices were increased for the second time in less than a week, helping oil marketing companies recover losses caused by high crude oil prices.
2. How much have petrol and diesel prices increased in Delhi?
After the latest hike, petrol prices in Delhi rose to Rs 98.64 per litre from Rs 97.77, while diesel prices increased to Rs 91.58 per litre from Rs 90.67.
3. Why did crude oil prices fall on May 19?
Crude oil prices eased after US President Donald Trump delayed a planned military strike on Iran, raising hopes of lower tensions in West Asia and improving market sentiment.
