Oil retailers' shares slump after cut in fuel prices

Shares of oil marketing companies such as Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd were down today after petrol and diesel prices were cut again ahead of the Delhi Assembly elections, even as global oil prices have risen.

 It is the tenth straight cut in petrol prices since August and the sixth straight cut in diesel since October 2014. State oil firms align local rates with the average global fuel prices of the past fortnight.

 "International prices of both petrol and diesel have continued to be on a downtrend and the INR-USD exchange rate has appreciated. The combined impact of both these factors warrant a decrease in retail selling prices of both petrol and diesel," Indian Oil Corporation said in a statement.

The cut in fuel prices come at a time when global crude oil prices have surged 15 per cent since Thursday. Crude oil prices have risen to close to $57 per barrel after remaining below $50 for many days.

Global oil majors such as BP and Chevron have announced cuts in capital expenditure.