Shares of state-owned oil marketing companies surged in midday trade on Monday after Brent crude fell below $100 per barrel and the government raised petrol and diesel prices for the fourth time in under two weeks, improving the margin outlook for state-run fuel retailers.

Hindustan Petroleum Corporation (HPCL) led gains with a 5.8 per cent rise to ₹412.55 on the NSE. Bharat Petroleum Corporation (BPCL) advanced 4.44 per cent to ₹308.70, while Indian Oil Corporation (IOC) climbed 3.9 per cent to ₹144.95. On the NSE, IOC was up 3.68 per cent at ₹144.60 as of 12.40 IST, with its session high at ₹145.30.

Petrol prices were raised by ₹2.61 per litre and diesel by ₹2.71 per litre on Monday, pushing Delhi petrol to ₹102.12 a litre and diesel to ₹95.20. In Mumbai, petrol now costs ₹111.21 and diesel ₹97.83. Cumulative hikes since May 15 have reached nearly ₹7.5 per litre across both fuels, following increases of ₹3 on May 15, 90 paise on May 19, and 87–91 paise on May 23.

The price revisions coincide with a sharp fall in global crude oil prices. Brent futures dropped 5.7 per cent to around $97.69 a barrel, while WTI fell 6 per cent to roughly $90.85 — both touching their lowest levels since May 7. The sell-off followed comments from US President Donald Trump indicating progress in negotiations with Iran on a memorandum of understanding that could lead to the reopening of the Strait of Hormuz, a critical chokepoint handling over one-fifth of the global oil and gas trade.

For OMCs, the combination of easing crude costs and higher retail selling prices widens marketing margins. Lower crude prices also reduce inventory losses and ease working capital pressure — factors that had squeezed profitability since crude surged more than 50 per cent following US-Israeli strikes on Iran in late February.

Despite Monday’s gains, IOC, BPCL, and HPCL remain down 13–20 per cent year-to-date in 2026, having been weighed down through much of the year by elevated import costs. IOC’s 52-week high stands at ₹188.96, hit on February 27, against a 52-week low of ₹130.22 recorded on April 2. BPCL’s 52-week high is ₹391.65 versus a low of ₹266.60. The three companies together control around 90 per cent of India’s fuel retail market.

MCX crude oil opened with a sharp gap-down and is trading in the ₹8,700–₹8,800 zone, after breaking below ₹9,000. Analysts note the near-term bias on crude remains cautiously bearish, with the next key support at ₹8,600–₹8,500, contingent on further developments in West Asia diplomacy.

Published on May 25, 2026