Crude Oil Price Spike: How Every Dollar Rise Impacts Indian Companies

The global crude oil market is once again on fire — and not in a good way. If you woke up to the news of Brent crude oil shooting past $77 a barrel, you’re not alone. The spike of over 12% has sent shockwaves across industries, especially in India, where companies are directly tied to oil price movements.

But what caused this sudden surge? In short: geopolitical tension. Early morning airstrikes by Israel on Iran’s nuclear facilities rattled the markets, and the oil price responded like a triggered alarm. The effects of this spike are already being felt across the Indian stock market, and the implications are massive.

Let’s break it all down — and take a closer look at how every dollar rise in crude oil affects companies from ONGC to HPCL, aviation to paint, and everything in between.

Why Did Oil Prices Spike Overnight?

Tensions between Israel and Iran flared up again, with Israel reportedly targeting key Iranian nuclear facilities. Iran’s Supreme Leader confirmed that high-level scientists and commanders were killed in the attack, and he’s already vowed retaliation.

That’s serious stuff — and markets reacted fast.

• Brent crude oil surged past $77 per barrel, climbing over 12%.

• West Texas Intermediate (WTI) followed a similar pattern.

This dramatic rise wasn’t just a market blip — it’s a warning flare for global economies.

Which Indian Companies Are Feeling the Heat?

Some sectors thrive on rising oil prices, while others take a massive hit. Let’s start with the losers.

1. Oil Marketing Companies (OMCs): A Costly Affair

Companies like:

• Hindustan Petroleum Corporation Ltd. (HPCL)

• Bharat Petroleum Corporation Ltd. (BPCL)

• Indian Oil Corporation (IOC)

These are the most directly impacted when crude oil prices rise.

Here’s why: these companies refine and sell petroleum products. The higher the input cost (i.e., crude oil), the more their profit margins get squeezed — especially when they can’t immediately pass the hike to consumers.

For every $1 per barrel rise in crude, the EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) of these OMCs is estimated to drop by ₹200 crore to ₹300 crore.

That’s a big deal.

2. Aviation Sector: Fueling Worries

If you’re planning a trip, brace yourself. Airlines are also under pressure.

Aviation companies depend heavily on Aviation Turbine Fuel (ATF), which is directly linked to crude oil prices. With crude spiking, their operating costs soar — meaning flight ticket prices could follow.

3. Paint & Tyre Companies: Surprising Victims

Believe it or not, paint and tyre companies like Asian Paints or MRF are also vulnerable.

For paint companies, around 50% of their raw material cost is crude-linked. That means higher oil = thinner margins.

Tyre companies also rely on crude-based components like synthetic rubber, making them collateral damage in this oil war.

4. The Winners: Upstream Oil Explorers

Now let’s flip the coin.

Companies like:

• Oil and Natural Gas Corporation (ONGC)

• Oil India Ltd (OIL)

These are upstream oil explorers — they make money by extracting crude oil. So, naturally, the higher the crude price, the better their business.

In fact, every $1 per barrel increase in crude oil prices can add around ₹300 crore to ₹400 crore to the annual revenues of ONGC and Oil India.

That’s not just a bump — it’s a windfall.

ONGC Share Price: The Spotlight’s Back

Whenever crude oil prices jump, all eyes turn to ONGC share price.

Why? Because it’s one of the largest oil producers in India. Investors look at ONGC as a bellwether — when oil goes up, ONGC stock usually follows.

In the latest market action:

• ONGC shares have gained investor attention amid the Brent crude oil spike.

• Analysts are watching closely to see if ONGC will revise earnings estimates upward.

If you’re into the share market today, tracking ONGC share price could give you insights into how oil volatility translates into equity movement.

Stock Market Moves: Winners & Losers

As of June 13, 2025, the market has already responded to the chaos:

Top Gainers:

• Shah Metacorp: +12.23%

• Zenith Steel: +9.06%

• Archies: +9.02%

Big Movers from Oil Sector:

• Selan Exploration Technology: Up by 7.20%

• Excel Realty N Infra: Up by 7.04%

However, major OMCs like HPCL, BPCL, and IOC saw a sell-off earlier, driven by the crude spike.

Investor Outlook: What Should You Do Now?

If you’re holding stocks in aviation, tyres, or paint — maybe it’s time to re-evaluate. On the other hand, if you’re eyeing ONGC or Oil India shares, this might be a window of opportunity.

Key Questions To Ask Yourself:

• Are you diversified enough to handle oil volatility?

• Should you pivot toward upstream oil players?

• Is your portfolio overexposed to crude-sensitive sectors?

The Government’s Dilemma: To Intervene or Not?

As oil prices go up, inflation is never far behind. The Indian government will have to decide whether to:

• Cut fuel taxes to keep inflation in check

• Absorb the blow via subsidies

• Let market forces play out

Either way, Indian oil policy will be tested in the days ahead.

Read More: Plane Crash in Ahmedabad: Air India AI171 Disaster Explained

Conclusion

Crude oil isn’t just about petrol and diesel. It affects everything — from paint to planes, tyres to taxes.

The recent Israel-Iran conflict has shown just how tightly wound the oil market is. For India, a net importer of crude, this isn’t just a global story — it’s a domestic challenge.

And as oil prices climb, we’ll continue to see ripples in the Indian share market, especially in stocks like ONGC, HPCL, and BPCL.

So the next time you hear crude oil went up by a dollar — remember, it’s not just a number. It’s a chain reaction.