HPCL (up 1.15%), BPCL (up 1.03%) and Indian Oil Corporation (up 0.89%), edged higher.
The BSE Sensex was up 412.83 points, or 2.25% at 18,762.08.
US crude oil futures for November delivery rose as much as 0.98% to $93.33 in electronic trading today, 21 September 2012, after front-month prices slid 7.2% in the four days through yesterday, when the October contract expired.
The Ministry of Petroleum & Natural Gas on Monday, 17 September 2012, said that public sector oil marketing companies (PSU OMCs) are currently (effective from 16 September 2012) incurring daily under-recovery of about Rs 498 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas reviewed international prices of crude oil and petroleum products during the 1st fortnight of September 2012. The under-recovery on High Speed Diesel (HSD) applicable for 2nd fortnight of September effective 16 September 2012 remains at high level of Rs 13.86 per litre despite last week's price hike, the Ministry of Petroleum & Natural Gas said in a statement. In case of PDS Kerosene and Domestic LPG the under-recoveries are Rs 32.70 a litre and Rs 347 per cylinder respectively for September 2012 as the same are reviewed on monthly basis, the Ministry of Petroleum & Natural Gas said.
PSU OMCs incur under recoveries on domestic sale of diesel, LPG and kerosene at government controlled prices. The government has already freed pricing of petrol. The Cabinet Committee on Political Affairs (CCPA) raised price of heavily subsidised diesel by Rs 5 per liter on Thursday, 13 September 2012, to balance government's fiscal deficit situation. The CCPA also restricted the supply of subsidized LPG cylinders to each consumer to six cylinders (of 14.2 kg) per annum. It kept kerosene prices unchanged.
Meanwhile, the government today, 21 September 2012, removed all taxes on non-subsidised LPG cylinders. Announcing the decision, Finance Minister P Chidambaram said that there will zero customs duty and VAT on non-subsidised cylinders.
The FM also welcomed the decision by some of the states to raise the cap on maximum number of subsidised LPG cylinders a family can buy in a year from six to nine.
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