PSU Oil Shares Plummet Amid Crude Price Surge
State-run oil marketing companies in India saw their shares decline as global crude prices surged. The rise in crude prices pushed Brent crude for November 2026 delivery above the $99-per-barrel mark, driven by escalating geopolitical tensions in West Asia.
The impact was felt on the broader market, with the Nifty 50 trading 0.53% lower at 23,653.95. PSU oil retailers such as Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation saw their shares fall by significant percentages: Bharat Petroleum Corporation fell 3.08%, Hindustan Petroleum Corporation declined 2.34%, and Indian Oil Corporation slipped 0.85%.
The pressure on PSU oil retailers is due to the fact that domestic LPG and kerosene are sold at regulated prices. A sharp rise in global oil prices can increase under-recoveries on such sales, potentially weighing on profitability.