Shares of state-owned oil marketing companies rose significantly on Monday as Brent crude settled at approximately $95 per barrel, its lowest point in over two weeks. This price drop coincided with the government increasing domestic fuel prices for the fourth time in less than two weeks, which enhances the earnings outlook for these state-run retailers.
Hindustan Petroleum Corporation (HPCL) closed 3.52 percent higher at ₹403.35 on the NSE, reaching a session high of ₹412.55. Bharat Petroleum Corporation (BPCL) gained 4.28 percent, closing at ₹308.25, with its session peak at ₹309. Indian Oil Corporation (IOC) finished 3.21 percent higher at ₹143.95 after hitting an intraday high of ₹145.30. All three companies turned positive for May and are likely to close in the green for the second consecutive month, despite being down 13 to 19 percent year-to-date in 2026.
On Monday, petrol and diesel prices were increased by ₹2.61 and ₹2.71 per litre, respectively, marking the fourth hike since May 15 and bringing cumulative increases to nearly ₹7.5 per litre. In Delhi, petrol is now priced at ₹102.12 per litre and diesel at ₹95.20. These repeated adjustments aim to reduce under-recoveries for oil marketing companies (OMCs), coinciding with a notable drop in global crude prices, thus widening marketing margins for the three firms that collectively hold around 90 percent of India’s fuel retail market.
Brent crude futures declined close to 5 percent, settling around $95.43 per barrel, while WTI dropped approximately 5 percent to about $91.73. On the Multi Commodity Exchange (MCX), crude oil settled near ₹8,700 per barrel, down about 5.1 percent for the day after breaking below the critical ₹9,000 mark. This sell-off was driven by growing optimism regarding a potential US-Iran agreement that could reopen the Strait of Hormuz, a vital transit route for over one-fifth of global oil and gas trade. US President Donald Trump described the deal as a “good and proper” one, with reports indicating that Iran might agree to surrender enriched uranium as part of a US-backed peace proposal. Israeli Prime Minister Benjamin Netanyahu also confirmed discussions with Trump on reopening the Strait.
For India, the decline in crude prices provides essential relief since the country imports a significant portion of its oil through the Strait of Hormuz. Lower global benchmarks mean reduced import costs for OMCs, narrow inventory losses, and ease pressure on working capital, thereby improving the overall earnings outlook after months of margin compression due to elevated global oil prices following US-Israeli strikes on Iran in late February.
Brent crude’s previous close was $100.21 per barrel before Monday’s session, with the daily trading range between $94.22 and $99.59, concluding around $95.43. The near-term outlook for crude remains cautiously bearish, with MCX support anticipated at ₹8,600 to ₹8,500 and resistance at ₹8,900 to ₹9,000.
Published on May 25, 2026.
