Following a statement by Congress President Sonia Gandhi, the government has cut Petrol prices by Rs. 2 and Diesel prices by Rs. 1.

Sonia Gandhi had commented during a speech to the Congress Parliamentary Party, that benefit of lower international oil prices should be passed on to the people.

Oil marketing companies were estimated to make a profit of Rs 4.5 per litre of petrol and a loss of 0.5 per litre of diesel before this cut. However petrol accounts for just 10 per cent of sales by volume, while the sale of diesel is four times that of petrol.

The companies are also making a loss of Rs 152 a cylinder of LPG and a loss of Rs 14.75 a litre of kerosene.

All oil marketing company stocks are down today by around 3%.

The government will be issuing special bonds worth Rs 5000 crores to HPCL, BPCL and IOC to help them offset some of the losses due to high international crude prices. The government had issued bonds of the same amount in October this year.

Alchemist, I've noticed that many times in the present falling market, at least one of these three, BPCL, HPCL, IOC, is in the gainers list.

What do you think is the logic involved?

Lower crude oil price
= lower subsidy burden for OMC's (oil marketing companies)
= higher profits for OMC's (or lower losses, depending on the exact prices).

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

It is a surprise hike

http://www.business-standard.com/ind...-2ltr/66253/on

Let's see how market takes it tomorrow!

May be this hike is showing what is going to be in the Budget.They may favor the industry rather than AAM AADMI.

UPA don't need the people's support foe next 5 years.They can do everything what they want in next 4 years and 8 months..