Oil stocks gain on diesel hike proposal

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Reuters: Mumbai, Jan 10 2013, 11:01 IST

Shares in Oil & Natural Gas Corp rose as much as 3.6 per cent on Thursday as part of a rally across oil companies after the oil ministry moved a proposal to raise diesel prices to the federal cabinet.

India's oil ministry has proposed to raise diesel prices by 1 rupee per month for 10 monhts and to increase the number of subsidised cylinders.

ONGC shares rose 3.1 percent as of 0416 GMT. Hindustan Petroleum Corp gained 2 percent, while Bharat Petroleum Corp rose 2.1 percent. Indian Oil Corporation was up 3.8 percent.

Stocks More on ONGC

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Oil stocks gain up to 4% on hopes of hike in fuel prices

Mumbai, Jan 10 (PTI) Oil stocks today rose by as much as 4 per cent following the Oil Ministry's proposal to hike diesel rates by Rs 3-4.50 per litre.

Shares of IOC gained 3.59 per cent at Rs 297.95 – 52- week high. Similarly, HPCL gained 2.38 per cent at Rs 345.30, while BPCL's scrip moved up by 2.97 per cent to Rs 395.85.

ONGC, too, surged 2.06 per cent.

Led by the gains in these stocks, the BSE oil and gas index was trading 0.62 per cent up at 8,950.51 in the late morning trade.

Analysts said stocks of oil companies were in demand on hopes of a hike in fuel prices that would reduce their subsidy burden and improve revenues.

On diesel, the ministry

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DIESEL PRICE TODAY AT 5PM A KING IDEA OF PM AND MASTER STROKE OF FM

Nitin N Varia | 10-Jan-2013Reply | Forward

AT LAST THE DIESEL PRICING REFORM ACTIVATED AND ANNOUNCEMENT AT 5 PM ON A KING IDEA A MASTER STROCK THAT LINGK%u2019S INDIAS%u2019S FUEL PRICING TO WORLD PRICING Amid the mist of resistance from all corners of the political spectrum the PM and FM have finally decided to act as per their conscience and not appeasement by mounting under recoveries. The toughest of reform now activate and formally to be announced the whole country shall be explained the rational behind this hard decision= its long term benefit in containing fiscal deficit to a healthy level so that rating down grade does not get triggered and rupee do not tumbles to 63 to a dollar. There are innumerable benefits of not BRIBING by under recovery as it is a slow .poison and more injurious to all. All political parties to support this radical move that will bring fast development to the country. The PM and FM deserve best applause after a long time the two captains of the country have decided to bite the bullets and walk the talk. This is decision based on WISDOM and what the previous FM was doing was decision based on KNOWLEDGE and need of the hour is to establish faith and credibility of congress and bring transparency and stop BRIBING hence WISDOM shall prevail over KNOWLEDGE. THE PM AND FM HAVE DECIDED THEY WILL CRY ONCE TODAY BY RAISING FUEL PRICES BY TS. 4 PER LITRE AND LPG BY RS. 75 PER CYLINDER AND TILL THE ELCTIONS ARE CALLED THEY WILL BE LAUGHING AS THEY WILL BE REDUCING THESE PRICES AS FROM MARCH THE CRUDE PRICES TO TUMBLE TO 60 DUE TO GLUT IN OIL SANDS AND 20% OF CRUDE OIL IMPORT IN USA.