Oil, airlines stocks drift lower as fuel prices rise

Last Updated: Tue, Sep 04, 2018 15:13 hrs
FILE PHOTO: A logo of Indian Oil is seen on the shirt of an employee at a fuel station in New Delhi

Mumbai: With PSU oil marketing companies increasing the prices of petrol and diesel by 16 paise and 19 paise per litre, fuel prices are now up for a tenth successive day and are at new highs. In Delhi, petrol now costs costs Rs 79.31 a litre, while in Mumbai, Chennai and Kolkata, the price is now Rs 86.72, Rs 82.41 and 82.22, respectively. Diesel now costs Rs 71.34 a litre in Delhi, the cost in Mumbai is 75.74 a littre. In Chennai diesel costs Rs 75.39 per litre and in Kolkata it costs 74.19 a litre.

Among the shares from the BSE Oil & Gas index, except Reliance Industries, which is up 1.35%, others are down in negative territory. IGL, Petronet and Castrol India are down 2.4% - 2.7%.

Hindustan Petroleum Corporation is declining 2.1%, BPCL is down 1.7% and Indian Oil Corporation is trading lower by 1.2%. GAIL India is down 1.6%, while Oil India and ONGC are modestly lower.

Airlines stocks are down shaply due to rising aviation fuel prices. InterGlobe Aviation is lower by about 2.4%, Jet Airways is down 2.5% and SpiceJet is down nearly 1%. All these stocks are trading near their 52-week lows and further rise in fuel prices could well see these stocks drifting further down south.

Crude oil futures for October delivery moved past $70 a barrel on reports Anadarko Petroleum Corp evacuated and shut production at two of its oil platforms in the Gulf of Mexico, ahead of the approach of hurricane Gordon.

While many international shippers have reportedly stopped loading Iranian oil as U.S.' financial sanctions against Iran prohibit them from insuring their cargoes, India has allowed state run refiners to import Iranian oil, provided Tehran is ready to arange and insure tankers.

China is also continuing to purchase Iranian oil, by utilising the vessels owned by National Iranian Tanker Co.

Some leading brokerages and analysts expect crude oil prices to reach $80 and move beyond as well in the short term. However, many feel global crude supply may exceed demand going forward, as trade disputes between the U.S. and China and other major economies might result in a drop in demand for crude oil.

"Crude oil export losses from Iran due to U.S. sanctions, production decline in Venezuela and episodic outages in Libya are unlikely to be offset entirely by corresponding rises in OPEC  production due to market share sensitivities," says a note from BNP Paribas. The bank expects Brent to average $79 per barrel in 2019.

State Capitals (Applicable from 6:00 a.m. on 04-09-2018) Petrol Current Price(Per Lt) Petrol Previous Price(Per Lt) Change(Rs)
Petrol price in New DelhiRs.79.15 Rs.78.84 0.31
Petrol price in KolkataRs.82.06 Rs.81.76 0.30
Petrol price in MumbaiRs.86.56 Rs.86.25 0.31
Petrol price in ChennaiRs.82.30 Rs.81.93 0.37
Petrol price in GurgaonRs.79.77 Rs.79.27 0.50
Petrol price in NoidaRs.79.44 Rs.79.19 0.25
Petrol price in BangaloreRs.81.72 Rs.81.40 0.32
Petrol price in BhubaneswarRs.77.90 Rs.77.60 0.30
Petrol price in ChandigarhRs.76.21 Rs.75.91 0.30
Petrol price in HyderabadRs.83.92 Rs.83.59 0.33
Petrol price in JaipurRs.82.49 Rs.81.72 0.77
Petrol price in LucknowRs.79.23 Rs.66.78 12.45
Petrol price in PatnaRs.85.36 Rs.85.17 0.19
Petrol price in TrivandrumRs.82.62 Rs.82.30 0.32