Oil and gas stocks opened on a mixed note in early trade on Friday after the government cut excise duty on petrol and diesel, offering relief to oil marketing companies even as global tension kept sentiment in check.
The Centre reduced excise duty on petrol to Rs 3 per litre and brought diesel duty down to zero, alongside changes in windfall taxes. The announcement comes amid supply concerns linked to the US-Israel war on Iran and disruptions around the Strait of Hormuz. Early market action showed buying in select city gas and upstream names, while refiners and large-cap energy companies traded lower.
IOC, Reliance and MRPL under pressure
Indian Oil Corporation dropped 1.99% to Rs 137.85, while Reliance Industries declined 2.48% to Rs 1,377.50. Mangalore Refinery and Petrochemicals fell 3.89% to Rs 179.00 in early trade.
Confidence Petroleum India jumps 8.44% in opening trade
Confidence Petroleum India led the early gains, rising 8.44% to Rs 37.53, up Rs 2.92, with volumes at 1,64,700 shares. The stock saw strong buying interest as traders reacted quickly to the policy move and its possible impact on fuel-linked demand.
“Oil marketing companies were losing money on the marketing side because cost of crude oil shooting up,” ANI reported, pointing to the relief expected after the duty reduction.
Adani Total Gas and IRM Energy trade higher in early session
Adani Total Gas gained 4.28% to Rs 543.75, up Rs 22.30, while IRM Energy rose 3.03% to Rs 183.80, adding Rs 5.40 in early deals. The move reflected optimism in city gas distribution companies, which tend to benefit when fuel affordability improves.
The government also sought to calm supply concerns.
“All retail outlets are operating normally across the country,” the Ministry of Petroleum and Natural Gas said in a statement cited by ANI, adding that fuel availability remains adequate.
Mahanagar Gas and ONGC see steady buying
Mahanagar Gas rose 2.08% to Rs 958.30, while Oil and Natural Gas Corporation added 2.02% to Rs 275.70, gaining Rs 5.45. These stocks saw steady interest in early trade, supported by expectations that policy support and stable domestic supply could aid sentiment.
ANI noted that the Strait of Hormuz handles between 20 and 25 million barrels per day of crude, underlining the global supply risks that continue to hover over the sector.
Oil services names trade marginally higher
Jindal Drilling & Industries edged up 0.69% to Rs 495.45, while Deep Industries inched higher by 0.08% to Rs 427.15. The muted gains suggest a cautious approach in oilfield services counters during the opening session.
OMCs and refiners slip despite policy support
Petronet LNG fell 0.52% to Rs 248.65, while Bharat Petroleum Corporation declined 0.58% to Rs 282.95 in early trade. The reaction remained subdued despite the excise duty relief aimed at supporting oil marketing companies.
“Retail prices of Petrol and Diesel remain unchanged as of now,” ANI noted, indicating that the benefit may not be immediately visible at the pump.
Indraprastha Gas, GSPL and HPCL trade lower
Indraprastha Gas slipped 0.74% to Rs 147.95, Gujarat State Petronet declined 0.80% to Rs 236.05, and Hindustan Petroleum Corporation fell 0.83% to Rs 341.35. These stocks saw mild selling pressure in the opening minutes.
The government also set windfall tax on diesel exports at Rs 21.5 per litre, which could weigh on refining margins.
GAIL and Oil India extend losses in early deals
GAIL (India) dropped 1.04% to Rs 137.70, while Oil India fell 1.29% to Rs 465.50, down Rs 6.10. The broader market weakness also played a role, with the BSE Sensex down 1.34% or 1,008.47 points at 74,264.98 in early trade.
Gujarat Gas and HOEC see sharper cuts
Gujarat Gas declined 1.63% to Rs 326.00, while Hindustan Oil Exploration Company fell 1.69% to Rs 119.45. These stocks saw sharper declines compared to peers during the opening session.
“All refineries are operating at high capacity, with adequate crude inventories in place,” the ministry said, according to ANI.
Chennai Petroleum
Chennai Petroleum Corporation saw the steepest fall, down 4.88% to Rs 954.20, losing Rs 49.00. The sharp drop reflects concerns around refining margins and export-linked taxation.
ANI also noted that aviation turbine fuel has been exempted from special additional excise duty, while export tax has been set at Rs 29.5 per litre.
Conclusion
Early trade on Friday shows a split within the oil and gas pack. Select stocks linked to city gas and upstream activity have opened higher, while refiners and large-cap names remain under pressure. The excise duty cut has set the tone for the day, but global supply risks and crude price movements continue to weigh on sentiment as trading gets underway.