BPCL, HPCL, and IOCL Share Prices Fall Up to 4% After Rising Crude Oil Prices

Shares of state-owned oil marketing companies (OMCs) came under selling pressure on July 8, 2026, after global crude oil prices climbed sharply. HPCL, BPCL, and Indian Oil Corporation (IOCL) fell between 3% and 4%, while upstream oil producers ONGC and Oil India gained around 2% each.

The decline in OMC stocks comes as higher crude oil prices are expected to increase their fuel procurement costs and weigh on profitability.

Why Did OMC Stocks Fall?

Crude oil prices rose nearly 2% after the United States launched airstrikes against Iran and tightened sanctions on Iranian crude exports. The developments have raised concerns over possible disruptions to oil supplies from West Asia, particularly through the Strait of Hormuz, a key global shipping route.

Higher crude oil prices generally increase the cost of purchasing crude for oil marketing companies. Unless fuel prices are raised accordingly, their profit margins tend to shrink.

OMC Stocks Lag the Market in 2026

So far in calendar year 2026, HPCL, BPCL, and IOCL have significantly underperformed the broader market. HPCL has fallen about 22%, BPCL around 21%, and IOCL nearly 17%, compared with an 8.9% decline in the BSE Sensex.

Meanwhile, ONGC and Oil India have outperformed the market, gaining up to 4% during the same period as rising crude prices improve their earnings outlook.

Read More: Dividend Stocks This Week (July 6 – 10): Mphasis, Titan, Nestlé India, Axis Bank and 41 Others to Trade Ex-Dividend!

Crude Oil Prices Edge Higher

On Wednesday:

• Brent crude rose 1.9% to $75.54 per barrel.
• West Texas Intermediate (WTI) crude also gained 1.9% to $71.81 per barrel. 

Both benchmarks had already climbed around 3% in the previous session following renewed sanctions on Iranian oil exports.

Conclusion

The latest surge in crude oil prices has created a sharp divergence within India's oil sector. While upstream companies like ONGC and Oil India stand to benefit from higher oil prices, oil marketing companies such as BPCL, HPCL, and IOCL may continue to face margin pressure if crude remains elevated. 

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