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.