BPCL traded 3.2 per cent lower, while HPCL shares were off by 1.6 per cent as of 2.35 p.m. Indian Oil shares traded 3.4 per cent lower.
The finance ministry is reportedly unwilling to cross budgeted subsidy burden of Rs. 35,000 crore in the March quarter. The ministry reportedly expects Indian Oil, BPCL and HPCL to absorb Rs. 5,500 crore as subsidy burden for the quarter.
This implies 5.5 times year-on-year rise in these firms; subsidy burden, which is a negative surprise, analysts said.