HPCL, BPCL, IOC Shares Dip Over 3% After Trump’s Tariff Threat on Russian Oil Imports

Market Performance

Oil & gas stocks witnessed a sharp decline on Tuesday after former US President Donald Trump issued a stern warning to India regarding its imports of Russian crude oil.

• Nifty Oil & Gas Index dropped by 1.3%
• Broad-based weakness was observed across energy counters

Major public-sector oil companies led the fall in the sector, dragging down the overall index.

Main News

Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), and Indian Oil Corporation (IOC) saw notable declines following Donald Trump's statement that he would significantly raise tariffs on Indian exports. This move comes as a response to India’s continued import—and alleged resale—of discounted Russian crude in international markets.

Trump’s remarks included a potential 25% tariff on Indian goods, with a proposed implementation date of August 1. He criticized India’s ongoing defense and energy engagements with Russia, suggesting these contribute indirectly to the ongoing war in Ukraine.

Share Price Movement

• HPCL: Down 3.47%
• BPCL: Down 2.53%
• IOC: Down 2.13%
• Oil India: Down 2.05%
• Mahanagar Gas: Down 2.71%
• Reliance Industries: Down 1.18%

Company Details

The sharp drop in share prices impacted several major players:

Hindustan Petroleum Corporation Ltd (HPCL)

HPCL was among the worst hit, falling over 3.4% during intraday trading. The stock reacted sharply to concerns that future US tariffs could dent export-linked profitability.

Bharat Petroleum Corporation Ltd (BPCL)

BPCL saw a decline of 2.53%, reflecting investor caution around potential geopolitical headwinds and energy trade scrutiny.

Indian Oil Corporation (IOC)

IOC’s share price also slipped over 2.13% amid fears of operational and earnings disruptions in the wake of proposed trade sanctions.

Oil India

Shares of Oil India dropped 2.05%, mirroring the sector-wide sell-off.

Mahanagar Gas

The company’s stock price dipped by 2.71%, indicating market-wide pressure even on domestic-focused energy companies.

Reliance Industries

Though relatively less affected, Reliance Industries registered a fall of 1.18%, contributing to the overall index weakness.

Summary of the Article

Oil & gas stocks, including major state-run companies such as HPCL, BPCL, and IOC, suffered significant losses on Tuesday, dropping over 3% in reaction to Donald Trump’s tariff threats. The proposed trade penalties target India’s engagement with Russian crude oil, alleging resale in global markets.

The Nifty Oil & Gas index declined 1.3%, with companies like Oil India, Mahanagar Gas, and Reliance Industries also recording losses. The market reaction underlines investor concerns over international policy shifts and their cascading impact on Indian energy stocks.

No details were provided by Trump on the implementation specifics of the proposed tariff hikes.