Oil stocks pare gains; GAIL bucks trend

Gail India gained 3% at Rs 418. Earlier in the day it touched a high of Rs 424. The counter witnessed trades of 4.99 lakh shares on the BSE.

HPCL slipped to a low of Rs 350 and finally ended with a 1% loss at Rs 353. Around 4.6 lakh shares were trade on the BSE today.

BPCL pared gains and ended ulmost unchanged at Rs 583. Around 3.2 lakh shares changed hands at the counter today.

Oil India shed 1% to Rs 1,179.
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(Updated at 0917 hrs)

The oil stocks are on fire in this morning's trade as the Kirit Parikh committee has recommended the deregulation of petroleum product prices. Gail India is trading at Rs 418, stronger by Rs 13 or 3.3%, BPCL is at Rs 593, higher by Rs 13 or 2.2% and HPCL is placed at Rs 362, up Rs 6 or 1.8%.

In its report submitted to the Petroleum Minister Murli Deora, the Kirit Parikh committee has recommended market-determined pricing for petrol and diesel. It has also suggested linking the price of domestic LPG and kerosene distributed through the public distribution system (PDS) to the increase in per capita GDP for urban population and agriculture GDP, respectively.

The committee has proposed an increase of Rs 6 in kerosene prices and at least Rs 100 for LPGs.
 
The committee was appointed last year to suggest a pricing policy for petroleum products. The Petroleum ministry is expected to process the report and place it before the Cabinet in a week's time.