Table of Contents
What is the reason for increasing petrol price in India?
Elevated tax levels are also playing a major role in the current record high prices in India. The central government had last year increased levies on petrol by Rs 13 per litre and on diesel by Rs 16 per litre to shore up revenues as the pandemic forced a sharp slowdown in the economic activity.
Is Indian oil good for long term investment?
Considering that Indian Oil commands a premium over its peers, long-term investors can bet on this stock. operates eight refineries across the country with a total refining capacity of nearly 50 million tonne per annum. The company controls nearly 55\% market share in retail sales of petroleum products.
Which companies will benefit from low oil prices?
“Oil marketing companies such as IOCL, BPCL and HPCL are likely to benefit from low oil price given the reduction in refinery fuel loss and potentially higher auto fuel marketing margins,” said Abhijeet Bora, analyst, Sharekhan.
Why is the price of petrol and diesel increasing?
He said the COVID pandemic is the major reason for the rise of oil prices in the international market. The prices of petrol and diesel will increase again in the coming months, says energy expert Narendra Taneja on Thursday. Speaking to ANI, Taneja said, “It is to understand that we import oil.
What causes increase in petrol price?
Increased Demand: With an increase in vehicle-owning population, demand increases which affects its price. Taxes: Prices change as per the changes in government policies imposing tax on fuels – there are two major tax levied on petrol. This is the excise duty and the value added tax (VAT)
Is IOC a good stock?
All in all, looking at valuations, dividend yields, solid track record and an impeccable retail fuel network, IOC remains a good pick.
A rise in oil prices, drags these stock prices lower and vice versa. However, ONGC is an upstream business and benefits from higher oil prices. Hence, a more positive correlation with global Crude prices.
Are oil marketing companies affected by lower crude oil prices?
Lower prices are positive for oil marketing companies and stock price of OMCs are inversely related to crude oil prices but in limited range. Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL).
IOCL Market shares – 51\% in Crude & Product Pipeline , 42\% in Petroleum and oil lubricants. All these companies are Government of India controlled “Maharatna Companies” and are engaged in refining of crude oil & marketing of petroleum products. Let’s have a look at the comparative analysis of these companies on following parameters. 1.
Is BPCL’s premium valuation in crude oil refining justified?
Oil refining is a very capital intensive sector, hence it is important to look at return ratios like RoCE and RoE. As seen, BPCL has better return ratios ( RoCE and RoE) as compared to its peers and hence justifies its premium valuation to certain extent.