Oil marketing companies such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) dropped after reports that the government has asked the OMCs to absorb Rs 1 per litre price hike. Stock of HPCL declined as much as 5.55 per cent to Rs 344.65 while BPCL and IOC were down by over 3 per cent each at around 10 am on the BSE. “The government is said to rule out excise duty cut to lower oil prices,” ET Now said quoting agencies. Concerns on weak marketing and refining margins, rising crude prices, and lower budgetary allocation for petroleum subsidy had already hit OMCs in the recent past.

Their shares have fallen 6-16 per cent during the last six months. Petrol sells in Delhi at Rs 73.98 per litre whereas it costs Rs 76.69, Rs 81.83 an Rs 76.75 in Kolkata, Mumbai and Chennai, respectively.

The fuel was available at Rs 68.48, Rs 71.26, Rs 75.59 and Rs 70.96 in Delhi, Kolkata, Mumbai and Chennai, respectively, six months ago.

Diesel costs Rs 64.96 in Delhi on April 11 as against Rs 58.37 six months earlier.