Shares of six state-run upstream and downstream oil & gas companies rose by 0.46% to 2.79% at 15:15 IST on BSE on hopes of announcement of reforms by the government on subsidies.
Meanwhile, the BSE Sensex was up 116.58 points, or 0.44%, to 26,559.39
Shares of PSU OMCs and state-run upstream and downstream oil and gas companies advanced on hopes of announcement of reforms by the government on subsidies.
Among downstream oil and gas companies, shares of BPCL (up 1.7%), HPCL (up 1.41%) and Indian Oil Corporation (up 1.05%) gained.
Among upstream oil and gas companies, shares of ONGC (up 2.69%) and Oil India (up 2.79%) edged higher.
GAIL (India) rose 0.46% to Rs 435.75, with the stock reversing intraday fall. The stock was volatile. The stock hit high of Rs 437.25 and low of Rs 426.30 so far during the day. The stock turned ex-dividend today, 27 August 2014, for final dividend of Rs 5.90 per share for the year ended 31 March 2014.
Public sector oil marketing companies (PSU OMCs) suffer under-recoveries on domestic sale of diesel, LPG and kerosene at a controlled price. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
State run upstream companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
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