Shares of major Oil Marketing Companies rallied strongly on Monday, jumping up to 6% following the government's decision to hike fuel prices in the country for the fourth time in 10 days. According to reports from Outlook Business, the price increases made petrol ₹2.61 per litre costlier and diesel by ₹2.71 per litre. This sustained price adjustment has provided a positive catalyst for oil marketing companies' stock performance, with the latest revision pushing cumulative fuel price hikes close to ₹7.5 per litre since retail price adjustments resumed earlier this month after a prolonged freeze.
As reported by Outlook Business, HPCL emerged as the top gainer, rising 5.8% to ₹412.55, while BPCL gained 4.44% to ₹308.70 and IOC advanced 3.9% to ₹144.95. The strong performance across all three major oil marketing companies reflects positive investor sentiment toward the sector's prospects, with Monday's rally helping OMC shares turn positive for May and positioning them for a second consecutive month of gains. However, despite the recent recovery, the stocks remain down 13%-20% so far in 2026.
According to Outlook Business, the oil marketing companies' gains were supported by a sharp decline in global crude prices, with Brent crude futures dropping more than 5% to trade below the psychologically important $100-per-barrel level at around $98, while WTI crude slipped nearly 6% to around $91.30 per barrel. The decline followed comments from US President Donald Trump, who said Washington and Iran had largely negotiated a memorandum of understanding on a peace agreement that could eventually reopen the Strait of Hormuz. The Strait of Hormuz handles more than one-fifth of global oil and gas trade and remains one of the world's most critical energy transit routes, with any easing of tensions generally viewed positively by energy markets.
The repeated fuel price increases are expected to further pressure household budgets and transportation costs as consumers continue to grapple with rising fuel expenses. As per Outlook Business, retail fuel prices had remained largely unchanged for nearly four years before revisions resumed on May 15, with the latest revision pushing petrol prices in Delhi to ₹102.12 per litre from ₹99.51 and diesel to ₹95.20 from ₹92.49 per litre. However, investors welcomed the easing crude prices and repeated fuel price revisions aimed at reducing financial pressure on state-run retailers, with expectations that lower crude prices, along with recent retail price increases, could help improve marketing margins for OMCs that had been under pressure from elevated global oil prices.
