Mumbai, April 13 -- The trigger was a fresh geopolitical flare-up after the US Navy moved to restrict vessel movement linked to Iran through the Strait of Hormuz, a corridor that carries a significant chunk of the world's oil trade. The move followed the collapse of weekend negotiations between Washington and Tehran in Islamabad.
Back home, the Street reacted swiftly. Shares of Hindustan Petroleum Corporation dropped up to 3.97%, Bharat Petroleum Corporation fell 3.41%, and Indian Oil Corporation declined 3.01%.
The underlying worry is simple but brutal: when crude rises faster than pump prices, OMC margins get squeezed. With fuel prices often moving with a lag in India, any sustained rally in oil could dent profitability.
Interestingly,...