Live
- Cyber Crimes Surge by 18% in 2024: Director Shikha Goel Reports
- BGT: We are seeing a master at work; I take my hat off to him, says Abbott on Bumrah
- Niranjan Reddy Slams Jupally Krishna Rao and Government Over Irrigation Incompetence
- Gardner reflects on Australia's dominant year after ODI series sweep over NZ
- Pushpa Producer Naveen Yerneni Donates Rs. 50 Lakhs to Family of Victim in Sandhya Theater Incident
- NC MP holds anti-reservation protest outside J&K CM’s residence
- Inflation burden eases for farm and rural labourers
- Delhi BJP releases 'chargesheet' against Kejriwal, AAP govt
- The First 40 Days: Sonnalli Seygall’s Thoughts on Traditional Postpartum Care
- CM Nitish Kumar embarks on Pragati Yatra from West Champaran, begins development drive in Bihar
25% petrol, diesel price hike inevitable choice for OMCs
Combination of duty cut, retail price hike must to fight crude rally: Emkay Global
New Delhi: Coordinated action, including a cut in excise duty, reduction in value added tax (VAT) coupled with a hike in retail selling price, are required to manage the rising crude prices as oil marketing companies (OMCs) have been already operating on a wafer thin margins, brokerage house Emkay Global Financial Services said in a report.
On an average, petrol-diesel marketing margins are at negative Rs6.5-9.1 per litre and the current skyrocketing global crude prices - $130 per barrel - calls for an eventual hike of Rs28-30 litre on fuels, said the brokerage report.
Ongoing hostilities between Russia and Ukraine, as well as the lack of fresh supplies, have pushed crude oil price to a 14-year high of $130 per barrel on Monday.
"We are raising our FY23/24 Brent price estimate to $100/80 per barrel from $80/75, while retaining our long-term assumption at $75/bbl. FY22 average is expected to be $80/bbl."
Keeping the elevated crude prices in mind, the brokerage gave a 'Buy' call for ONGC shares with a target price of Rs 230. The scrip is currently trading at Rs 172.
For Oil India too, the brokerage recommended investors 'Buy' with a target price of Rs 335. Its current share price is at Rs 235. Besides, GAIL would also benefit from higher oil prices, it added.
