Shares of ONGC fell by over 6% in early trade on the BSE today amid media reports that the government has increased upstream oil companies' contribution toward fuel marketing firms' subsidy burden to 38.5% of the Rs 77,922 crore estimate for FY'11.
Following the reports, Oil and Natural Gas Corporation (ONGC) fell by 6.1% to touch a one-month low of Rs 279.35 on the Bombay Stock Exchange (BSE).
On the National Stock Exchange, the stock slipped by 5.97% to touch an early low of Rs 279.20 apiece.
According to media reports, upstream oil exploration companies will have to contribute Rs 30,000 crore to help compensate downstream fuel retailers for their subsidy burden in FY'11.
Other oil firms like Oil India and GAIL (India) were also trading under pressure. OIL fell by 1.41% to Rs 336.15, while GAIL went down by 2.36% to Rs 440 in early trade.
Meanwhile, the BSE benchmark Sensex was trading lower by 48.93 points at 18,296.10 at 1105 hours.
