Meanwhile, the BSE Sensex was up 168.95 points or 0.85% at 19,986.58
ONGC rose 4.8% to Rs 317.95 after striking a 52-week high of Rs 320.80 in intraday trade today, 17 January 2013. The counter clocked volume of 11.05 lakh shares on BSE.
Oil India gained 4.68% to Rs 516.50 on volume of 1.18 lakh shares on BSE.
GAIL (India) rose 0.9% to Rs 376.05 on volume of 1.28 lakh shares on BSE.
ONGC had outperformed the market over the past one month till 16 January 2013, rising 16.92% compared with the Sensex's 2.59% rise. The scrip had also outperformed the market in past one quarter, surging 8.77% as against Sensex's 6.67% surge.
Oil India had outperformed the market over the past one month till 16 January 2013, rising 10.33% compared with the Sensex's 2.59% rise. The scrip, however, underperformed the market in past one quarter, rising 1.55% as against Sensex's 6.67% surge.
GAIL (India) had outperformed the market over the past one month till 16 January 2013, rising 7.41% compared with the Sensex's 2.59% rise. The scrip, however, underperformed the market in past one quarter, falling 1.6% as against Sensex's 6.67% surge.
The Cabinet on Thursday refused to take a call on increasing the prices of diesel, kerosene and LPG and instead put the onus of oil marketing companies to decide on diesel price from time to time.
While announcing that the cap on subsidised LPG cylinders will be raised from six to nine from April 2013, Oil and Natural Gas Minister M Veerappa Moily said that the oil marketing companies can now decide on diesel price and change it by a small margin from time to time as per market conditions.
Declining to clarify on the quantum of change in diesel price, Moily said that it is up to the oil marketing companies to decide on the amount. Refusing to use the word "deregulation", the government said that there will be small changes spread over a period of time while the Oil Secretary said that the move cannot be termed as deregulation.
A hike in fuel price augurs well for state-run upstream oil & gas firms ONGC, Oil India and GAIL (India) as they share part of the under-recoveries of state-run oil refining-cum-marketing firms arising from the government-imposed price caps on three key fuels including diesel, LPG for domestic use and kerosene sold through the public distribution system. India, which imports over 80% of its fuel needs, had liberalised petrol prices in June 2010.
The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas after trading hours on Wednesday, 16 January 2013, said that the under-recovery on High Speed Diesel (HSD) applicable for 2nd fortnight of January 2013, effective 16 January 2013, has increased to Rs 9.60 a litre from Rs 9.03 a litre for the 1st fortnight of January 2013. In case of Domestic LPG and PDS Kerosene the under-recoveries for January 2013 (effective 1 January 2013) are Rs 490.50 per cylinder and Rs 30.64 per litre, respectively. PSU OMCs are currently (effective 16 January 2013) incurring daily under-recovery of about Rs 384 crore on the sale of Diesel, PDS Kerosene and Domestic LPG.
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