Indian Oil, HPCL, BPCL Shares Rise Up To 8% Over 10 Days as Four Successive Price Hikes Cheer Investors

Mumbai, May 25:State-run fuel retailers rallied after increasing petrol and diesel prices for the fourth time in 10 days as elevated crude oil prices linked to the Iran conflict continue to strain margins of oil marketing companies. 

Indian Oil Corporation rose 3.9% at Rs 145, Hindustan Petroleum Corporation Limited increased 4.7% at Rs 407.8 and Bharat Petroleum Corporation Limited rose 4% at Rs 307.6.

Across the time span of the four hikes, the fuel retailers have risen up to 8%, showing the significant impact of the price moves, with HPCL rising the most.

Petrol prices were raised by ₹2.61 per litre, while diesel prices were increased by ₹2.71 per litre on Monday. Following the latest revision, petrol in Delhi now costs ₹102.12 per litre and diesel is priced at ₹95.20 per litre.

The latest hike comes amid a sharp rise in global crude oil prices after disruptions in the Strait of Hormuz, one of the world’s most critical oil shipping routes, fuelled fears of tighter global supplies. Although Brent crude eased below the $100-per-barrel mark on Monday amid signs of progress in US-Iran peace negotiations, oil prices remain significantly elevated compared to earlier this year.

BPCL was at Rs 296 on May 14 before the price hikes began. Today it is at Rs 307.6, which is a rise of 4%. Source: NSE 

Fuel Prices Up Sharply Since May 15

This marks the fourth fuel price increase since May 15, when state-owned oil marketing companies first raised retail fuel prices after nearly four years of stability.

Since then, petrol prices have increased by about 7.8% per litre, while diesel prices have risen by about 8.6% per litre across major cities.

HPCL was at Rs 378 on May 14 before the price hikes began. Today it is at Rs 407.8, which is an improvement of 8%. Source: NSE

The price revisions are being carried out by state-owned Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, which dominate India’s fuel retailing market.

Despite the repeated hikes, oil marketing companies are still selling fuel below cost because of elevated crude procurement and transportation expenses.

Executives at Bharat Petroleum had earlier indicated that the company was incurring losses of as much as ₹25-30 per litre on diesel sales and ₹10-14 per litre on petrol due to the sharp spike in crude prices during the Iran conflict. However, markets are choosing to cheer for now, sending the stocks of fuel retailers higher and even expecting more price hikes to come in the near future.

IOC was at Rs 140.7 on 14 May before the price hikes began. Today it is at Rs 145, an improvement of 3%. Source: NSE

Inflation Worries Back in Focus

The sustained rise in fuel prices is expected to increase transportation and logistics costs, potentially feeding into broader inflationary pressures across the economy.

Higher diesel prices could particularly affect freight movement, agriculture and industrial activity, while rising petrol prices may impact household budgets and discretionary spending.

Sectors dependent on transportation and fuel consumption, including aviation, logistics, paints and consumer goods, could see cost pressures if crude prices remain elevated for a prolonged period.

India, the world’s third-largest crude oil importer, remains especially vulnerable to disruptions in West Asian energy supplies. Any prolonged instability around the Strait of Hormuz could further tighten global oil availability and increase import costs for Indian refiners.

While Monday’s decline in crude prices offered some relief to global markets, fuel retailers and consumers alike remain exposed to volatility stemming from geopolitical developments in West Asia.

Petrol Rises as Delhi Crosses Rs 100 Mark

| City | Old rate (per litre) | New rate (per litre) | Increase |

| ——- | ——————– | ——————– | ——– |

| Delhi | Rs 99.51 | Rs 102.12 | +Rs 2.61 |

| Kolkata | Rs 110.64 | Rs 113.51 | +Rs 2.87 |

| Mumbai | Rs 108.49 | Rs 111.21 | +Rs 2.72 |

| Chennai | Rs 105.31 | Rs 107.77 | +Rs 2.46 |

Diesel Climbs as Delhi Pushes Past Rs 95

| City | Old rate (per litre) | New rate (per litre) | Increase |

| ——- | ——————– | ——————– | ——– |

| Delhi | Rs 92.49 | Rs 95.20 | +Rs 2.71 |

| Kolkata | Rs 97.02 | Rs 99.82 | +Rs 2.80 |

| Mumbai | Rs 95.02 | Rs 97.83 | +Rs 2.81 |

| Chennai | Rs 96.98 | Rs 99.55 | +Rs 2.57 |

Source: 

• https://www.nseindia.com/get-quote/equity/IOC/Indian-Oil-Corporation-Limited
• https://www.nseindia.com/get-quote/equity/HINDPETRO/Hindustan-Petroleum-Corporation-Limited
• https://www.nseindia.com/get-quote/equity/BPCL/Bharat-Petroleum-Corporation-Limited