ONGC, RIL, Oil India rally after gas price hike approval

ONGC, RIL, Oil India rally after gas price hike approval

Shares in energy companies in India surged in trade on Friday after the government's approval of a hefty increase in gas prices is seen boosting earnings for producers such as ONGC and Reliance Industries.

ONGC rose more than 10 percent, while Reliance gained 4.3 percent. Oil India gained more than 7 percent.

Indicative pricing has suggested domestic gas prices could rise to $8.4-8.5 per mmBtu with the new mechanism, drawn up by a committee headed by C. Rangarajan, from a current $4.2 mmBtu.

At 9:20 a.m., ONGC was trading up 7.8 percent, Oil India up 3.3 pct, while Reliance was up 3.6 percent.

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