Indian refineries and oil marketing companies (OMCs) have collectively lost nearly Rs. 1.8 lakh crore in market capitalisation since the beginning of the US-Iran conflict on February 27, as soaring crude oil prices and a weakening rupee triggered a sharp sell-off in energy stocks.

National Stock Exchange (NSE) data shows Indian Oil Corporation (IOCL) alone lost over Rs. 67,753 crore in market capitalisation, the highest in absolute terms. IOCL was followed by Reliance Industries (RIL) at Rs. 61,755 crore, Bharat Petroleum Corporation Ltd. (BPCL) at Rs. 38,916 crore, and Hindustan Petroleum Corporation Ltd. (HPCL) at Rs. 10,894 crore.
Share prices of these companies also fell steeply during the period, with IOCL declining over 26%, BPCL nearly 24%, HPCL around 13%, and Reliance about 2.4%.

RIL sells refined products at market-linked prices, unlike state-run OMCs that remain obligated to government-controlled fuel pricing and face margin compression during periods of elevated crude prices.

MJU

The sharp decline in refinery stocks comes as global crude oil prices surged following the escalation of the US-Iran conflict. Brent crude jumped from nearly $72.48 per barrel on February 27 to above $106 by May 20, increasing pressure on Indian refiners that rely heavily on imported crude. Higher crude prices directly raise raw material costs for oil marketing and refining companies.

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Rising crude prices have also begun to show up in India's inflation indicators. Wholesale Price Index (WPI) inflation climbed to 8.3% in April from 2.26% in February, while fuel and power inflation surged to 24.71% in April from just 1.05% in March, reflecting the broader impact of rising energy costs on the economy.

At the same time, a weakening rupee has amplified the burden on oil-importing companies. RBI forex data shows the rupee weakened to Rs. 96.48 per US dollar by May 20 from around Rs. 91.07 on February 27. Since crude oil imports are settled in dollars, a depreciating currency significantly raises the effective import bill for refiners even if global prices remain unchanged.

Together, expensive crude and a weaker rupee have substantially raised input costs for Indian oil refiners, intensifying pressure on both profitability and market valuations.

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Published on: May 22, 2026 5:12 PM IST