Shares of three gas utility firms rose 1.88% to 3.56% at 13:58 IST on BSE on reports that the cut in gas price would reduce raw material costs and expand margins.
Gujarat State Petronet (up 3.56% at Rs 142.70), Gujarat Gas (up 2.7% at Rs 549.50) and Indraprastha Gas (up 1.88% at Rs 560.35) edged higher.
Meanwhile, the S&P BSE Sensex was up 64.78 points or 0.26% at 25,403.36.
Media reports suggested that the government has reduced the price of locally produced gas by about 20% for the six months period starting 1 April 2016, compared with the previous six months period. Cairn India (down 1.37%), ONGC (down 1.93%) and Oil India (down 0.24%), edged lower. Gas price will be cut to $3.06 per million British thermal units (mmBtu) on gross heat value basis in the first half of the next fiscal year starting 1 April 2016, 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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