Oil and gas stocks today rose by as much as 3.6 per cent after the government notified a new natural gas pricing formula that will be almost double the rate of all domestically produced fuel starting April 1.
Shares of Oil India gained 3.59 per cent, ONGC shot up 2.94 per cent and RIL jumped 2.58 per cent on the BSE.
The BSE's oil and gas index rose by 2.24 per cent to close the day at 8,741.09.
"The gas price hike will be applicable to RIL, ONGC/OIL nominated fields (APM gas), CBM and shale gas...ONGC and Oil India would be the major beneficiaries of this price hike as they are the largest producers of APM gas," said ICICIdirect.Com analysts Mayur Matani and Nishit Zota.
The government on Friday notified a new natural gas pricing formula that will be almost double the rate of all domestically produced fuel to USD 8.2-8.4 a unit starting April 1.
The Ministry of Petroleum and Natural Gas notified the 'Domestic Natural Gas Pricing Guidelines, 2014' that will apply to all natural gas produced domestically, irrespective of the source, whether conventional, shale or coal-bed methane (CBM) from April 1, 2014.
