Oil marketing companies such as IOC, HPCL and BPCL fell as much as 4.8 per cent to 7 per cent as according to Moody’s Investors Service, state-run explorers face increasing risk of sharing fuel subsidy.
Moody’s Investors Service has assessed that as oil prices rise, Oil and Natural Gas Corporation and Oil India Ltd are facing an increasing risk that the Government will once again require them to share in the country's fuel-subsidy burden.
Oil marketing cos such as Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd have shared less than 1 per cent of total fuel subsidies since FY2012, and it is unlikely that proportion of such costs will rise, it said.
IOC stock hit its lowest since December 2016. ONGC and Oil India dropped 3 per cent and 2 per cent, respectively. Over 7.5 million HPCL shares changed hands, compared with 30-day average of around 6.8 million shares. HPCL and BPCL were the top percentage losers on broader NSE index.