Buzz of government package fuels oil marketing scrips

-

Shares of three state-run oil marketing companies advanced between 4.35% and 5.59% at 11:10 IST on BSE on reports the Union government is planning a comprehensive package for oil firms to deal with the impact of soaring global crude oil prices.

Bharat Petroleum Corporation (up 5.59% to Rs 365.50), Hindustan Petroleum Corporation (up 4.95% to Rs 245.95), and Indian Oil Corporation (up 4.35% to Rs 424), advanced.

Meanwhile the BSE Sensex was up 56.08 points or 0.33% at 16,963.26

Bharat Petroleum Corporation clocked volumes of 1.89 lakh shares, Hindustan Petroleum Corporation notched volumes of 3.32 lakh shares whereas 2.35 lakh shares changed hands on Indian Oil Corporation counter on BSE

The likely measures include a mix of some duty cuts, additional issue of bonds to the companies as well as a moderate increase in the prices of petrol and diesel.

The soaring global crude prices has dealt a big blow on the profitability of the domestic oil marketing companies (OMCs), as they sell petroleum products below the cost price. The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks. As per reports, under-recoveries of state-owned oil majors Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation in 2008- 2009 are projected at over Rs 200000 crore on the sale of petrol, diesel, cooking gas and kerosene at prices below the import cost.

US crude oil was trading higher by 0.31% at $131.22 a barrel today, 23 May 2008 after striking record high of $135.09 a barrel yesterday, 22 May 2008.

Meanwhile, Oil Minister Murli Deora today, 23 May 2008, said the issue of oil price revision was not on the agenda for today's cabinet meeting. He, however, said it was necessary to take immediate steps to save oil companies and has called a meeting of heads of the state-owned oil companies tomorrow, 24 May 2008 to discuss the price issue. Earlier today, Petroleum Secretary M.S. Srinivasan said an increase in domestic fuel prices was inevitable and the government would work out the size of the rise by today evening.

Prime Minister Manmohan Singh had on Thursday, 22 May 2008, denied reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices. However he said that state run oil companies will not be allowed to indefinitely suffer the consequences of an administered price regime that does not allow them to raise retail prices even as global crude touches new highs.

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

Griffin Chemicals surges on re-listing

-
Griffin Chemicals was trading at Rs 29, up 2220% on re-listing after six years on Bombay Stock Exchange (BSE). The counter saw miniscule volume of 4769 shares. The stock opened at Rs 23, up 1740% against its last traded price of Rs 1.25 on 8 August 2002. The Griffin Chemicals stock was highly volatile today. It opened at Rs 23 and then rallied ahead to Rs 50 but soon eased to a low Rs 22. The surge in Griffin shares reminds of unprecedented rise in stock prices of KGN Industries on its re-listing day. KGN Industries, run by Ahmedabad-based Memon family, had re-listed at Rs 100 per share after nearly seven years in May 2008 this year. The stock had risen to a high of Rs 55,000.
Read more