Shares of state-owned oil marketing companies ended Monday’s session with solid gains after Brent crude settled near $95 per barrel — its lowest level in over two weeks — and the government raised domestic fuel prices for the fourth time in less than a fortnight, improving the earnings outlook for state-run retailers.

Hindustan Petroleum Corporation (HPCL) closed 3.52 per cent higher at ₹403.35 on the NSE, after touching a session high of ₹412.55. Bharat Petroleum Corporation (BPCL) gained 4.28 per cent to close at ₹308.25, with the session high at ₹309. Indian Oil Corporation (IOC) ended 3.21 per cent higher at ₹143.95, having hit an intraday peak of ₹145.30. All three stocks turned positive for May and are on course to close in the green for the second consecutive month, despite remaining down 13–19 per cent year-to-date in 2026.

Petrol and diesel prices were raised by ₹2.61 and ₹2.71 per litre respectively on Monday — the fourth hike since May 15 — taking cumulative increases to nearly ₹7.5 per litre. Delhi petrol now costs ₹102.12 per litre and diesel ₹95.20. The repeated revisions, aimed at narrowing under-recoveries for OMCs, coincided with a sharp retreat in global crude prices, together widening marketing margins for the three companies, which collectively control around 90 per cent of India's fuel retail market.

Brent crude futures fell close to 5 per cent to settle around $95.43 per barrel, while WTI dropped roughly 5 per cent to about $91.73. On MCX, crude oil settled near ₹8,700 per barrel, down approximately 5.1 per cent on the day after breaking below the psychologically significant ₹9,000 mark. The sell-off was driven by growing optimism over a US-Iran agreement that could eventually reopen the Strait of Hormuz, a critical transit route for over one-fifth of global oil and gas trade. US President Donald Trump said over the weekend that any deal would be a "good and proper" one, while reports indicated Iran may agree to surrender enriched uranium under a US-backed peace proposal. Israeli Prime Minister Benjamin Netanyahu also confirmed discussions with Trump on reopening the Strait.

For India, easing crude prices offer direct relief: the country imports a substantial share of its oil through the Strait of Hormuz, and lower global benchmarks reduce import costs for OMCs. Lower crude prices narrow inventory losses and ease pressure on working capital, bolstering the overall earnings outlook after months of margin compression caused by elevated global oil prices following US-Israeli strikes on Iran in late February.

Brent crude's previous close stood at $100.21 per barrel ahead of Monday's session, and its trading range for the day was $94.22 to $99.59, before settling near $95.43. The near-term bias on crude remains cautiously bearish, with MCX support seen at ₹8,600–₹8,500 and resistance at ₹8,900–₹9,000.

Published on May 25, 2026