IGL, MGL gain up to 4% post Kirit Parikh panel gas pricing recommendations

The S&P BSE Oil & Gas index hit a 52-week high of 20,653.57 in intra-day trade on Wednesday

Shares of oil & gas companies, including those of city gas distribution (CGD) companies, were in focus on Wednesday and moved higher by up to 4 per cent on the BSE intra-day trade on reports that the Kirit Parikh Committee recommended a floor and ceiling price for natural gas produced from legacy fields for a period of five years.

ONGC will be paid a floor price of US$ 4/mmbtu and ceiling price of US$ 6.5/mmbtu. The ceiling price will have an annual escalation clause. The escalation being suggested is US$ 0.5/mmbtu annually with no change in pricing for