Shares of India’s state-owned oil marketing companies (OMCs) retreated in Thursday’s trading session as global crude oil prices surged past the $90 per barrel threshold.
Hindustan Petroleum Corporation (HPCL) led the decline, dropping as much as 1% on the National Stock Exchange, while peers Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) also slipped by less than a percent.
The $90 level for crude oil has become a critical psychological and operational barrier for Indian refiners, who rely heavily on imported crude.
The sell-off marks a continuation of selling pressure on Indian refiners, which have struggled with compressing refining margins amid elevated benchmark prices.
The move follows sharp declines earlier in the week, with HPCL falling 5.4% on Tuesday and IOC posting significant losses on Monday as traders priced in the impact of higher feedstock costs on profitability.
The $90 level for crude oil has become a critical psychological and operational barrier for Indian refiners, who rely heavily on imported crude.
Persistent geopolitical tensions and shipping risks in key transit zones have supported higher energy prices, limiting the ability of OMCs to pass on costs to consumers without eroding demand or facing regulatory scrutiny.