Crude Price Surge Hits PSU Oil Retailers' Margins

State-run oil marketing companies in India are facing pressure on their margins due to a surge in global crude prices. The Brent crude price for November 2026 delivery has risen above $107 per barrel, pushed by escalating geopolitical tensions in West Asia.

The increase in crude prices is weighing heavily on the shares of Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil Corporation (IOC). HPCL's stock fell 2.43%, BPCL declined 1.80%, and IOC dropped 0.81%.

Domestic LPG and kerosene are sold at regulated prices, which means that a sharp rise in global oil prices can lead to increased under-recoveries on these sales. This could potentially weigh on the profitability of PSU oil retailers.