This comes at a time when OMCs have kept a tight lid on fuel prices for over two weeks, which could hurt their bottom line.
On Wednesday, Brent crude futures for July series were trading 2.5 per cent higher at $76.73 a barrel -- the highest since November 2014.
IOC Chairman Sanjiv Singh has reportedly said oil PSUs have not hiked petrol and diesel prices since April 24. The freeze in fuel prices follows the finance ministry's refusal to cut excise duty to give relief to the common man after petrol hit a 55-month high and diesel a record high of Rs 65.93, according to PTI.
BPCLNSE -3.26 % weakened 3.65 per cent to hit a low of Rs 378.45. HPCLNSE -3.36 % fell 5.37 per cent to Rs 290.45. IOC declined 3.48 per cent to Rs 160.80.
"The impact (of potential new sanctions) on India will be there, but not so high," Reuters quoted a BPCL spokesperson as saying.
"Crude prices are trending higher with what the US has done in terms of the sanctions on Iran. The spike in oil prices obviously act negatively for OMCs. A crucial element in relation to earnings hinges on two factors: The movement of crude and the depreciation of the rupee against the dollar. Both these factors may eat into the earnings estimates for OMCs
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