Excise Duty Cut: HPCL, BPCL, IOC Shares Reverse Gains, Turn Negative

• HPCL, BPCL, IOC shares initially rose up to 4% after excise duty cut announcement, then reversed gains.
• Excise duty on petrol cut from ₹13 to ₹3 per liter, and on diesel from ₹10 to Nil.
• Lower excise duty expands marketing margins for OMCs, aiding cash flows and balance sheets.
• Former HPCL CMD MK Surana stated fuel prices unlikely to be cut at pump due to high under-recoveries.
• Oil Minister Hardeep Singh Puri confirmed government took a fiscal hit to reduce OMC losses; export tax levied on fuel.