How Crude Oil Prices can make major impact on India's Oil PSUs
After seeing a tough fight between Israel and Iran, and now the USA also, India is preparing itself for the unseen trouble.
Representational Image by Canva
New Delhi, June 24, 2025: With an intensive plunge of crude oil prices amid a ceasefire announcement between Israel and Iran, which is yet to be cleared. With a significant tanking of crude oil prices by 15% fall, it falls below the level of $70 per barrel in comparison to $ 81 per barrel in the corresponding testing level.
After seeing a tough fight between Israel and Iran, and now the USA also, India is preparing itself for the unseen trouble. The oil sourcing strategy is already in process before the tension increases. However, India has diversified its supplies in the past few years with a huge volume.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
In a responsive way, the shares of ONGC Ltd are trading down by 2.90% and Oil India shares were also down by 5.38% in Tuesday’s session.
It is noteworthy that a fall in crude oil prices is negative for major recognized oil companies like ONGC Ltd, Oil India. Yet it is positive for downstream refining companies like HPCL, BPCL and IndianOil.
Read Also : GAIL Excels in Cost Management, Wins Double Honors at National Awards 2025How do Crude Oil prices impact ONGC?
Every fall of $1 per barrel in crude oil price is going to hit hard to ONGC’s annual revenue of around Rs 300 crore and Rs 400 crore. Meanwhile, a $1 per barrel fall in crude prices can significantly improve the EBITDA by around Rs 200 crore to Rs 300 crore.
This fall can be beneficially attributed to paint oil companies as by as 50% of their input costs is linked to crude oil and a fall in the price will reduce the rate of raw materials, leading to better margins.
Read Also : Rear Admiral Jaswinder Singh to hold additional charge of Director (BC&T) in Shipping Corporation of India