Petroleum scrips zoom on govt plan to up gas prices | business | Hindustan Times
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Petroleum scrips zoom on govt plan to up gas prices

The government's decision to more than double the administered price of natural gas on Wednesday led to an immediate reaction from the stock market, as public sector oil and gas companies witnessed a surge in their share prices on Thursday.

business Updated: May 20, 2010 21:03 IST
HT Correspondent

The government's decision to more than double the administered price of natural gas on Wednesday led to an immediate reaction from the stock market, as public sector oil and gas companies witnessed a surge in their share prices on Thursday.

ONGC's share price rose by 11 per cent during the day before settling down at Rs 1,118, registering a gain of 8.7 per cent. Gail India's share price also rose by 2.4 per cent.

"While ONGC rose on account of the gas price hike, Gail saw a rise in share price in anticipation of an increase in its marketing margin," said Deepak Pareek, analyst at Angel Broking.

Oil marketing companies (OMCs), too, witnessed a surge in stock prices. While Indian Oil Corp's (IOC's) share price rose by 4 per cent, HPCL and BPCL saw their share prices rise by 3.2 per cent and 2.8 per cent, respectively.

There is a likelihood of deregulation in other fuel prices leading to gains for ONGC and OMCs, market experts said.

"Oil marketing companies saw a rise in share prices in anticipation of a better government policy on fuel prices," said Pareek.

The biggest loser in the group was Reliance Natural Resources Ltd (RNRL), whose share price fell by 3.4 per cent during the day to close at Rs 45.