Despite the rise in petrol and diesel prices, oil company shares fell. Investors fear that further increases in crude oil prices could increase companies' losses. Let's find out more about this.

Oil Company Shares Fall: The rise in petrol and diesel prices not only affected ordinary people, but oil companies also failed to receive much relief in the stock market. For the first time since 2022, petrol and diesel prices have been increased by up to ₹3 per liter. However, even after this, shares of state-owned oil marketing companies (OMCs) saw a decline.

Investors fear that crude oil prices may rise further. This has led to pressure on stocks and a decline. Let's find out more about this.

Shares saw a decline

HPCL and BPCL shares came under pressure from the start of Friday's trading session. Shares fell by nearly 3 percent. Market experts believe investors are concerned that a ₹3 increase won't cover the company's losses. This eroded investor confidence and triggered a sell-off.

With global crude oil prices still hovering above $100 per barrel, and no signs of peace in the Middle East, pressure on oil companies cannot be ruled out.

Despite the increased prices, the fear of loss persists

ET's report states that this increase in petrol and diesel prices will not provide much relief to oil companies. According to the report, if crude oil prices remain between $105 and $110 per barrel, state-owned oil companies could incur losses of up to ₹5 billion per day. This includes the impact of domestic LPG sales along with petrol and diesel. Experts believe that this increase is still significantly less than the current losses.

Concerns increased due to the increase in the price of crude oil

Global crude oil prices have seen a significant surge in the past few months. The Iran crisis and rising tensions in West Asia are believed to be the primary reasons for this. In February, Brent crude oil was around $69 per barrel. Gradually, its price rose to around $120.

Its price remains around $107 per barrel. Due to ongoing tensions in the Middle East, there is uncertainty about oil supplies, which is putting pressure on the market.