Oil & gas stocks spurt up to 10% on gas natural price hike approval

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Oil India rallied 9 per cent, while Gail India was trading 1.96 per cent higher. (Reuters) Oil India rallied 9 per cent, while Gail India was trading 1.96 per cent higher. (Reuters)
SummaryOil India rallied 9 per cent, while Gail India was trading 1.96 per cent higher.

Led by state-run ONGC, shares of oil and gas companies today rose by as much as 10 per cent after the government approved near doubling of natural gas prices, a move seen positive for upstream companies.

Cheering the move, ONGC climbed 10 per cent to Rs 353, while RIL's scrip jumped 5.12 per cent to Rs 873 on the BSE. \

Among others, Oil India rallied 9 per cent, while Gail India was trading 1.96 per cent 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.

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