Shares of oil companies on Thursday rose up to 4 per cent on the Bombay Stock Exchange after a report by an expert panel which suggested freeing fuel prices.
Shares of Gail India surged 3.34 per cent to a high of Rs 419, while Indian Oil Corporation jumped 2.43 per cent to Rs 324 in early trade.
The 10-share BSE Oil & Gas index rose by 67.21 points, or 0.67 per cent, to 10,058.10 points.
Other major gainers were ONGC (1.80 per cent), HPCL (1.56 per cent) and BPCL (1.30 per cent).
Marketmen said that shares of oil companies rose on hopes that suggestions given by the expert panel if implemented would have a positive impact on their balance sheets.
Among the companies which fell marginally were Aban Offshore (-0.61 per cent), Reliance Natural Resources (-1.38 per cent) and Reliance Industries (-0.07 per cent).
On Wednesday, the Prime Minister-appointed expert committee headed by Kirit Parikh suggested freeing of petrol and diesel prices and raising LPG rates by Rs 100 per cylinder and kerosene by Rs 6 per litre.
Freeing petrol and diesel prices would result in an increase of Rs 3 per litre in petrol prices and Rs 3-4 in diesel prices.