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To everyone’s anticipation but surprise, the shares of these three OMC’s giants exhibited sharp reversal on Friday, March 27, 2026. The giants in India’s three major state-run oil marketing companies (OMCs)- Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, and Indian Oil Corporation Limited witnessed a sharp reversal on.
Even though the government announced a significant reduction in excise duty on petrol and diesel, the stocks initially surged. But soon it erased all the gains to trade in the red.
Let us read what happened in reality.
What did the Government Announce?
Wary of the global situation of market and war, the Government of India announced a sharp cut for petrol and diesel in the SAED- Special Additional Excise Duty:
Fuel | Earlier Excise Duty | Revised Excise Duty | Change |
Petrol | ₹13 per litre | ₹3 per litre | ↓ ₹10/litre |
Diesel | ₹10 per litre | Nil | ↓ ₹10/litre |
When accounting all the components to deduce the price effect on petrol and diesel this is what happened. (Source: NDTV)
Why did the Government Cut Excise Duty?
The reduction in the excise duty is a sharp response after the surge in global crude oil prices.
Hardeep Singh Puri, Union Petroleum and Natural Gas Minister said, “In the last 1 month, the international crude prices have gone through the roof. It has reached around $70/barrel to $122/barrel. As a result, the price of petrol and diesel for consumers have gone up all over the world. (Source: NDTV)
Popular Reasons for the Cut in Excise Duty:
1. Geopolitical Tension:
The ongoing war looks to have set a strong pressure on the fuel prices. The US-Israel-Iran conflicts and fear of disruption have pushed Brent Crude sharply higher.
2. Under Recoveries:
OMCs were estimated to be losing approximately ₹48.8 per litre on blended fuel sales, as reported by Nomura (Source: NDTV)
3. Global Fuel Price Surge:
A stark rise in the fuel prices have been observed as: 30-50% in Southeast Asia, 30% in North America, 50% in Africa, and 20% in Europe.
How did OMC Stocks React?
Despite the positive intent of the duty cut, markets remained skeptical. The stocks gave up early gains and turned red:
Company | Early Gain | Later Move | Intraday Low |
HPCL | +5% (₹357.70) | Reversed to ~+0.4% | Declined up to 1.1% |
BPCL | +5% (₹298.50) | Reversed to ~+0.4% | Dropped up to 1.1% |
IOCL | +3% (₹144.37) | Turned negative | Fell up to 2.2% |
Broader Context: OMC Stocks Have Been Under Pressure
Ever since there was a conflict in price rise in the Middle East on February 27, 2026, the shares of OMC have been in a sustained downtrend.
Indian Oil (IOCL): Down 25%
HPCL: Down 22%
BPCL: Down 26%
BPCL Share Price
BPCL Share Price-Key Data (March 27, 2026)
The key data of BPCL is
Metric | Value |
Current Price (NSE) | ₹282.15 |
Open | ₹290.00 |
Previous Close | ₹285.00 |
Intraday High | ₹299.00 |
Intraday Low | ₹281.00 |
Change | -2.40 (-0.84%) |
Volume | 2,14,05,062 shares |
Market Cap | ₹1,22,410 Cr |
Source: MoneyControl
IOCL Share Price
Source: NSE
IOCL Key Data :
The key metrics of IOCL include:
Metric | Value |
Current Price (NSE) | ₹137.75 |
Open | ₹142.45 |
Previous Close | ₹140.52 |
Intraday High | ₹144.15 |
Intraday Low | ₹137.50 |
Change | -2.77 (-2.06%) |
Total Market Cap | ₹2,02,569 Cr |
Source: NSE
HPCL Share Price
Source: AngelOne
HPCL Share Price Key Data:
Metric | Value |
Current Price (NSE) | ₹341.75 |
Open | ₹352.50 |
Previous Close | ₹344.00 |
Intraday High | ₹357.70 |
Intraday Low | ₹338.25 |
Change | -3.55 (-1.03%) |
Volume | 1,55,92,474 shares |
Market Cap | ₹72,697 Cr |
Source: AngelOne
Revenue Impact on the Government
The revenue impact is deep.
The annual consumption of petrol and diesel as reported in India is 17,000 crore litres of petrol and diesel annually. Based on what analysts have tracked, as stated in NDTV Profit:
Revenue Loss to Government: ₹1.7 lakh crore
This equals ~5% of the central government’s gross revenue.
The cut is intended to absorb OMC’s losses rather than reduce retail pump prices immediately.
Why are Stocks Still Falling Despite Relief?
The market’s negative reaction reflects deep structural concerns:
Crude Oil Remains Elevated, as Brent crude oil is still above $107/bbl, keeping under recovery pressures high.
No Retail Prices Hike: Pump prices for consumers remain unchanged, meaning OMCs cannot pass on costs.
Partial Relief Only: The duty cut reduces losses but does not eliminate them, Nomura estimates marketing margins loss at ₹48.8/litre.
Key Data Summary
Metric | Figure |
Petrol excise duty (revised) | ₹3/litre (from ₹13/litre) |
Diesel excise duty (revised) | Nil (from ₹10/litre) |
Blended OMC marketing margin loss | ~₹48.8/litre (Nomura) |
Estimated govt. revenue loss | ₹1.7 lakh crore/year |
Crude oil price (recent) | ~$122/barrel |
IOCL stock decline since Feb 27 | -25% |
BPCL stock decline since Feb 27 | -26% |
HPCL stock decline since Feb 27 | -22% |
Conclusion
The government’s excise duty cut on petrol and diesel offer partial relief to IOCL, BPCL, and HPCL. The crude oil hovers over $122/barrel and retail pump prices unchanged. The under recovery pressure continues to weigh heavily on OMC margin.
Investors should watch crude oil price trends and future price revision before taking fresh positions in OMC stocks.
For unlisted shares, visit Stockify.
FAQs
Why did the OMC stocks fall after the excise duty cut?
There was a fall in stocks because the excise duty cut only gave partial relief. The Brent Crude oil is still above $107-$122/barrel and retail pump prices are left unchanged. Also OIMCs cannot pass the cost to the customers.
Will petrol and diesel prices go down for consumers?
The duty cut is primarily meant to reduce losses of OMCs, not to lower retail pump prices.
What is the government’s loss from this duty cut?
It is expected that the Indian government will have to face a loss of ₹1.7 lakh crores.
Which OMC has been the worst performer in 2026?
Out of the three OMC’s, Bharat Petroleum Corporation Limited has lost approximately 26% of its value since February 2026.
