HPCL, BPCL, IOC shares fall up to 2.5% after government slashes LPG cylinder prices
LPG cylinders by Rs 200 per refill. Hindustan Petroleum Corporation (HPCL) was the top loser as stock price declined 2.5% to the day's low of Rs 350.20.
Meanwhile, Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were down 1.5% and 0.82%, respectively.
A 14.2-kg LPG cylinder which was priced at Rs 1,103 in New Delhi will cost Rs 903 from today. For Ujjwala beneficiaries, the price will be Rs 703 after considering the continuing Rs 200 per cylinder subsidy.
The financial implication of the decision will come to around Rs 7,680 crore for the 2023-24 fiscal, IANS reported quoting official sources.
Ujjwala scheme subscribers already get Rs 200 subsidy on cooking gas cylinders, while the reduction of Rs 200 in prices of LPG cylinders announced on Tuesday will be on top of that, Information and Broadcasting Minister Anurag Thakur told mediapersons after the Union Cabinet meeting.
The additional subsidy on LPG cylinders will come into effect immediately as a 'Raksha Bandhan' and 'Onam' gift, and will cost the exchequer Rs 7,680 crore, the minister added.
The decision came months before the Assembly elections scheduled in four states, and the Lok Sabha elections due next year.
The correction in these stocks dragged the Nifty Oil & Gas index which was trading nearly flat, though the bias remained positive around 10:20 am.
In the 16-stock index, nine were trading in the green while seven in the red. The top gainers were Castrol India, Gujarat State Petronet (GSPL) and Oil India (OIL) which were up between 1.26% and 0.49% around this time.
Indian frontline indices S&P BSE Sensex and Nifty50 were trading in the green and were up by 0.50%.
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