New Delhi, March 30 -- Despite Brent crude at $115 a barrel, shares of oil marketing companies (OMCs) Indian Oil Corp Ltd (IOCL), Hindustan Petroleum Corp Ltd (HPCL), and Bharat Petroleum Corp Ltd (BPCL) held up better than the broader market during Monday's selloff. Markets see the government's Rs.10-per-litre excise duty cut from Friday as exactly what the doctor ordered for a sector staring at steep under-recoveries: Rs.26 per litre and Rs.82 per litre for petrol and diesel, respectively.

The policy move could cost the exchequer nearly Rs.14,000 crore in revenue per month. But it has shifted the breakeven crude price for OMCs refining and retail operations from about $90 a barrel earlier to roughly $106 a barrel now if retail prices o...