Lower crude oil prices will reduce under recovery of public sector oil marketing companies on domestic sales of diesel, kerosene and LPG at government controlled prices.
Hindustan Petroleum Corporation (HPCL) has rallied 4% to Rs 458, while Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) are up 3% each at Rs 669 and Rs 363 respectively on the Bombay Stock Exchange (BSE).
Oil India too gained 3% at Rs 615 and Oil and Natural Gas Corporation (ONGC) up 1.4% at Rs 437.
At 0925 hours, S&P BSE Oil and Gas index was up 123 points or 1.1% as against 93 points or 0.35% rise in S&P BSE Sensex.
In past five trading sessions, the oil and gas index surged 7.4% compared to 3.9% gain in the benchmark index.
Brent crude oil shed more than $ 2 a barrel to reach its lowest price in over a year on Monday as investor concerns over conflict in Ukraine and Iraq eased, and as higher Libyan oil output added to already ample supplies, the Reuters report suggests.
Brent crude fell $ 2.27 to $ 101.26 after notching a session low of $ 101.11, the lowest since June 24, 2013, added report.