Oil India expects Rs 1,000 cr rise in profits after gas price hike

State-run producer Oil India Ltd expects to increase profit by Rs 1000 crore annually on account of the increase in gas prices, its finance head said on Friday.

On Thursday, the government approved a gas price hike for the first time in three years. Indicative pricing suggests domestic gas could rise to around $8.4 per mmBtu from April 1, 2014, compared with $4.2 per mmBtu currently.

"This will incentivise us to get more aggressive in exploration activity," Oil India Finance Director TK Ananth Kumar told Reuters.

Natural gas segment contributes about 10-12% of Oil India's revenues.