IGL, MGL: Parikh recommendations may trigger up to 11% rally in gas stocks

Barring Gujarat Gas, other gas related stocks like Reliance, ONGC, MGL, IGL are poised for the next upside

The government appointed committee headed by Kirit Parikh, on Wednesday, proposed capping domestic gas prices in a band of $4- 6.50 per unit. This would relieve the current strain faced by gas distributers and end users. 

According to reports, ONGC will be paid a floor price of $ 4/mmbtu and ceiling price of $ 6.5/mmbtu. The ceiling price will have an annual escalation clause. The committee may not change the existing pricing formula for difficult fields such as KG-D6 of Reliance Industries, PTI reported. Besides, the Committee has also asked the government to remove caps on gas prices in