Oil Stocks Rally: HPCL, IOC, BPCL Jump After Fresh Petrol, Diesel Price Hike

Oil Stocks Soar: Shares of oil marketing companies rallied sharply after Brent crude prices slipped below $98 per barrel and the government announced another increase in petrol and diesel prices.

OMC Stocks: Investors cheered the easing pressure on refining margins, even as consumers across India continued to grapple with rising fuel costs.

Source : ABPLIVE AI

Show Quick Read

Key points generated by AI, verified by newsroom

• OMC stocks surge as crude prices fall, fuel prices rise.
• HPCL, BPCL, IOC lead gains amid improving market sentiment.
• Fourth fuel price hike in under two weeks adds relief.

Shares of state-run oil marketing companies (OMCs) surged sharply on Monday after global crude oil prices cooled to a two-week low and the government announced yet another increase in petrol and diesel prices, helping ease concerns around mounting losses faced by fuel retailers.

The rally pushed oil PSU stocks into the spotlight, with investors betting that softer crude prices and higher domestic fuel rates could help improve profitability after weeks of pressure linked to the West Asia conflict.

HPCL Leads Rally as Oil Stocks Rebound

Hindustan Petroleum Corporation Limited (HPCL) emerged as the top gainer among oil marketing companies during morning trade.

HPCL shares rose 4.35 per cent to Rs 406.65 on the BSE. Bharat Petroleum Corporation Limited (BPCL) followed with gains of 4.04 per cent at Rs 307.50, while Indian Oil Corporation (IOC) climbed 3.69 per cent to Rs 144.65.

The gains came as Brent crude prices slipped below the psychologically important $100-per-barrel mark, offering relief to companies grappling with elevated crude import costs.

Why OMC Stocks Are Rising

The sharp movement in OMC shares reflects improving sentiment around refining and marketing margins after weeks of stress caused by soaring global oil prices.

Since the outbreak of the West Asia conflict, rising crude oil prices have squeezed profitability for fuel retailers, particularly because domestic retail fuel prices had remained frozen for an extended period.

However, crude prices softened on Monday amid hopes that tensions in West Asia could eventually ease and shipping through the Strait of Hormuz, a key route for global oil flows, may normalise.

Brent crude futures fell $5.85, or 5.7 per cent, to $97.69 per barrel, while US West Texas Intermediate crude slipped $5.75, or 6 per cent, to $90.85 per barrel. Both benchmarks touched their lowest levels since May 7 earlier in the session.

Lower crude oil prices generally support OMC profitability because they reduce input costs and improve refining margins.

Fourth Fuel Price Hike in Less Than Two Weeks

Alongside softer crude prices, the latest increase in petrol and diesel prices has also helped reduce pressure on state-run fuel retailers.

Oil marketing companies raised petrol and diesel prices again on Monday, marking the fourth revision since daily fuel price changes resumed on May 15 after a prolonged freeze.

With the latest increase, cumulative hikes in petrol and diesel prices have now reached nearly Rs 7.5 per litre in less than two weeks.

In Delhi, petrol prices rose by Rs 2.61 per litre to Rs 102.12, up from Rs 99.51 earlier. Diesel prices increased by Rs 2.71 per litre to Rs 95.20.

The increase comes amid elevated crude oil prices and continued weakness in the rupee, both of which have increased import costs for OMCs.

Petrol Prices Across Metros

The latest revision pushed fuel prices higher across all four major metro cities.

Delhi: Rs 102.12 per litre (up Rs 2.61)
Kolkata: Rs 113.51 per litre (up Rs 2.87)
Mumbai: Rs 111.21 per litre (up Rs 2.72)
Chennai: Rs 107.77 per litre (up Rs 2.46)

Diesel Prices in Major Metros

Delhi: Rs 95.20 per litre (up Rs 2.71)
Kolkata: Rs 99.82 per litre (up Rs 2.80)
Mumbai: Rs 97.83 per litre (up Rs 2.81)
Chennai: Rs 99.55 per litre (up Rs 2.57)

Mumbai continued to record among the highest retail fuel prices in the country, with petrol crossing Rs 111 per litre.

Fuel Costs Rise Across Cities

Outside metro cities as well, consumers witnessed fresh increases in fuel prices.

In Jaipur, petrol prices climbed to Rs 112.69 per litre and diesel reached Rs 97.78 per litre. In Patna, petrol was retailing at Rs 113.37 per litre, while diesel stood at Rs 99.36 per litre.

Fuel prices in cities such as Noida, Bhopal, Chandigarh, Gandhinagar and Guwahati also moved higher following Monday’s revision.

OMC Stocks Still Under Pressure in 2026

Despite the latest rebound, OMC stocks continue to remain under pressure on a year-to-date basis.

According to a Livemint report, shares of oil marketing companies are still down between 13 per cent and 20 per cent so far in 2026, even though the current rally has pushed them into positive territory for May.

The recent recovery indicates that investors are closely tracking both global crude oil trends and domestic fuel pricing decisions as key triggers for the sector.

Rising Fuel Costs Keep Inflation Concerns Alive

While higher retail fuel prices may provide relief to oil retailers, they are also expected to increase pressure on household budgets and transportation costs.

Economists warn that rising petrol and diesel prices eventually feed into logistics, freight and commodity prices, potentially adding to broader inflationary pressures across the economy.