Oil India (up 3.21%), ONGC (up 3.12%) and Reliance Industries (RIL) (up 2.36%), edged higher.
Shares of state-run gas transmission and distribution major GAIL (India) were up 1.53%.
The BSE Sensex was up 177.28 points, or 0.96% at 18,729.40.
The CCEA last week deferred the proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for RIL from April 2014 when it is contractually due.
Meanwhile, the power and fertiliser ministries have strongly opposed the move as it would result in cost of electricity generation rising to unviable levels. The Fertiliser Ministry has written to the Petroleum Ministry opposing any gas price hike saying this would substantially increase production cost of urea and may lead to higher subsidy burden for the government.
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