Oil stocks fall after petrol price cut
Apr 16 2014 , Mumbai
Shares of Hindustan Petroleum Corporation Ltd (HPCL) tanked 3.53 per cent to settle at Rs 302.30 on the BSE.
Indian Oil Corp dropped by 2.19 per cent to Rs 261, while Bharat Petroleum Corporation Ltd was down 2.13 per cent to Rs 435.25.
The price of petrol was yesterday cut by 70 paise a litre, excluding local levies, the second reduction in rates this month as appreciation of the rupee against the US dollar made oil imports cheaper.
The reduction excludes local sales tax or VAT and the actual cut will be higher, varying from city to city.
Announcing the rate cut, Indian Oil Corp, the nation's largest fuel retailer, had said, "The continued appreciation of the rupee has resulted in reduction in petrol prices."
The government freed petrol prices from its control in June 2010 and since then state-owned oil firms have been revising rates on the 1st and 16th of every month based on the fortnightly average of international oil prices and the rupee-US dollar exchange rate.