Mumbai: Led by BPCL, shares of state-run oil companies rallied on the bourses on Thursday after the petrol price was hiked by a record Rs 7.54 per litre.

Shares of BPCL gained 5.11 percent to Rs 758.80 on the BSE, while HPCL was up 5.72 percent at Rs 327 and IOC rose by 4.57 percent to Rs 285.95.

"With this petrol price hike, the under-recovery (loss) due to selling petrol price at subsidised rates is expected to be lower. In turn, it would lower subsidy burden on upstream oil companies such as ONGC and GAIL. Hence, it would be positive for OMCs and ONGC," Angel Broking said in a report.

The decision of the oil marketing companies is the steepest hike in petrol price ever, the previous increase being Rs 5 per litre.

Petrol price in Delhi has been hiked by Rs 7.54 per litre to Rs 73.18 a litre. In Mumbai it will cost Rs 78.57 per litre as against Rs 70.66 a litre. In Kolkata, Rs 77.88 per litre and Chennai Rs 77.53 a litre.

Following surge in these stocks, the BSE oil and gas index was trading higher by 1.18 percent at 7,523.18 and was the top performer among the 13 sectoral indices.

Other stocks in the green were Gail India, up 2.16 percent, ONGC - 3.07 percent and RIL - 0.23 percent.

(Agencies)

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