Oil and gas stocks flare, ONGC surges 10%

Oil marking companies have raised diesel prices by 45 paise per litre, while government allowed the oil firms to sell diesel to bulk buyers at market rates.

State-owned oil and gas companies like Oil India, Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) have rallied up to 20%, extending their previous day’s rally in early deals today after oil marking companies have raised diesel prices by 45 paise per litre, while the government allowed the oil firms to sell diesel to bulk buyers at market rates.

The government on Thursday has permitted state-owned oil marketing companies to revise diesel prices periodically.

According to report up to 50 paise hike will take place every month. This amounts to nearly Rs 6 every year. The new prices will be effective from Friday.

 

Among the individual stocks, Oil India has surged 20% to Rs 618, followed by IOC (up 19% 375), ONGC (up 12% at Rs 354), HPCL (up 10% at Rs 378) and BPCL (up 8% at Rs 427) on the Bombay Stock Exchange.