Oil & gas stocks spurt up to 10% on gas price hike approval
Mumbai: Led by state-run ONGC, shares of oil and gas companies on Friday rose by as much as 10 percent after the government approved near doubling of natural gas prices, a move seen positive for upstream companies.
Cheering the move, ONGC climbed 10 percent to Rs 353, while RIL's scrip jumped 5.12 percent to Rs 873 on the BSE.
Among others, Oil India rallied 9 percent, while Gail India was trading 1.96 percent higher.
"The hike is positive for upstream companies such as ONGC, Oil India and Reliance Industries," Angel Broking said in a report.
The government had yesterday approved near doubling of natural gas prices to USD 8.4 from April 1 next year, a move which will result in rise in power tariff, urea cost and CNG prices.
The new price will apply uniformly to all producers, be it state-owned firms like Oil and Natural Gas Corp (ONGC) or private sector Reliance Industries.