Shares of two public sector oil companies, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), fell 1-2% after the Central Pollution Control Board (CPCB) fined the companies for not installing pollution control system at the petrol pump stations. 

State-owned Indian Oil Corporation, headquartered in New Delhi, announced in an exchange filing dated October 19, 2023, that the CPCB had slapped a Rs 1 crore monetary penalty for not installing Vapour Recovery Stations (VRS) at its retail outlets in NCR within the prescribed time given by the supreme court. 

The company mentioned that the financial implication would be limited to a compensation amount of Rs 1 crore. However, there is no impact on the operation and other activities of the company. 

The second largest state-owned downstream oil producer, BPCL, also received a notice from the CPCB amounting to Rs 2 crore for the same reason. According to its exchange filing, the company said it is examining the notice and would give an appropriate answer.

IOC and BPCL were ordered in 2016 to install VRS at the fuel stations. VRS are pollution control devices that prevent petrol vapours, which contain cancer substances like benzene, toluene and xylene, from escaping to the atmosphere. 

IOC shares closed the trading day at Rs 88.30, down 2.21% from the previous closing price on the National Stock Exchange (NSE). Shares of BPCL settled 0.92% lower at Rs 343.20.