Bharat Petroleum Corporation (BPCL) (up 0.34%) and Indian Oil Corporation (IOC) (up 0.26%), edged higher. Hindustan Petroleum Corporation (HPCL) was down 0.21% to Rs. 374, off the day's high of Rs. 377.50.
The BSE Sensex was down 230.73 points or 1.26% to 18,083.60.
BPCL had outperformed the market over the past one month until 1 August 2011, gaining 1.48% compared with the Sensex's 2.39% fall. The stock had also outperformed the market in past one quarter, gaining 4.41% as against 4.29% decline in the Sensex.
HPCL had underperformed the market over the past one month until 1 August 2011, falling 4.25% compared with the Sensex's 2.39% fall. However, the stock had outperformed the market in past one quarter, rising 0.75% as against 4.29% decline in the Sensex.
IOC had underperformed the market over the past one month until 1 August 2011, sliding 7.59% compared with the Sensex's 2.39% fall. The stock had also underperformed the market in past one quarter, tumbling 8.32% as against 4.29% decline in the Sensex.
Lower crude oil prices could reduce under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Light, sweet crude futures for delivery in September fell 76 cents or 0.8% at $94.13 a barrel, as investors shifted their focus to a possible global economic slowdown from US debt issues.
The Indian government on 24 June 2011 announced a hike in the price of diesel by Rs. 3 a litre, kerosene Rs. 2 a litre and cooking gas by a steep Rs. 50 a cylinder. The government also simultaneously slashed customs and excise duties on petroleum products, sacrificing Rs. 49000 crore a year in revenue. The government removed the 5% customs duty on crude oil, brought down the import duty on petrol and diesel from 7.5% to 2.5% and reduced the excise duty on diesel by Rs. 2.60 to Rs. 2 per litre.
