Gas E&P stocks edge lower on reports Govt slashes gas price by 20%

Shares of three companies engaged in exploration & production of gas fell 0.7% to 2.39% at 10:37 IST on BSE on reports that the government has reduced the cost of locally produced gas by about 20% for the six months period starting 1 April 2016.

Cairn India (down 2.39% at Rs 153.15), ONGC (down 1.95% at Rs 213.60) and Oil India (down 0.7% at Rs 312.85) edged lower. Reliance Industries (up 0.94% at Rs 1,054.70) edged higher.

Meanwhile, the S&P BSE Sensex was up 102.30 points or 0.4% at 25,440.88.

Media reports suggested that the government has reduced the cost of locally produced gas by about 20% for the six months period starting 1 April 2016, compared with the previous six months period. Prices will be cut to $3.06 per million British thermal units (mmBtu) in the first half of the next fiscal year starting 1 April 2016, on gross heat value basis, reports suggested. It will cost about $3.4 per mmBtu on a net heat value basis compared with $4.24 per mmBtu for the period from 1 October 2015 to 31 March 2016, as per reports.

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