ONGC jumps as India raises price of locally produced gas

Gujarat Energy

03/10/2022 05:26

** Shares in India's top oil explorer ONGC Ltd  ONGC.NS 
rise as much as 6.2% to 134.6 rupees, mark biggest intraday pct
gain since July 20
    ** India late on Friday said it would raise the price of
locally produced gas from old fields by 40% to a record $8.57
per million metric British thermal units (mmBtu) from Saturday
for six months
    ** ONGC stock touches highest level in nearly three weeks
    ** Oil to retail conglomerate Reliance Industries  RELI.NS 
rises as much as 1.7%, while Oil India  OILI.NS  climbs 4.2% in
its biggest jump since Aug. 5
    ** High natural gas prices will boost earnings of producers
    ** The raise should not only surprise investors but also
reduce past decade of skepticism on quality of returns for
hydrocarbon producers, brokerage Morgan Stanley writes in a note
    ** The Indian government also cut a windfall tax on
domestically produced crude oil to 8,000 rupees per tonne from
10,500 rupees per tonne from Sunday
    ** City gas distributors Mahanagar Gas  MGAS.NS ,
Indraprastha Gas  IGAS.NS  and Gujarat Gas  GGAS.NS  fall up to
3.9% each while GAIL  GAIL.NS  drops 2.9%, with Jefferies citing
impact from rise in feedstock cost
    ** Through last close, ONGC shares had declined nearly 11%
this year
 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))