LPG Cylinder Price: Shares Of Oil Marketing Companies Contract Over 2%; HPCL As Top Loser

Shares of oil marketing companies (OMCs) fell in Wednesday’s trading session after the government announced a slash in LPG cylinder prices by Rs 200 per refill.

Hindustan Petroleum Corporation (HPCL) was the top loser as it declined by 2.5%, trading to the day’s low at Rs 250.20 per piece. Whereas, Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) fell by 1.5% and 0.82%, respectively.

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The revised price for a 14.2-kg LPG cylinder in New Delhi is now Rs 903 from today, declined from Rs 1,103. However, 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 enjoy a 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.

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HPCL shares were trading 2.14% lower at Rs 258.25 per share, Bharat Petroleum Corporation shares down by 1.08% at Rs 352.95 and Indian Oil Corporation stock trading 1.03% lower at Rs 90.95 at NSE, at the time of writing this article.