In Monday’s intra-day trade, shares of state-owned oil exploration companies Oil India and Oil and Natural Gas Corporation (ONGC) gained up to 6 per cent on the BSE after the government increased gas prices.

ONGC gained 6 per cent to Rs 134.50, while Oil India rallied 4 per cent to Rs 182.10 in the intra-day trade. The S&P BSE Sensex was down 0.30 per cent at 57,255 points at 09:19 AM.

On Saturday, the government increased the prices of domestically produced natural gas for the October 2022-March 2023 period. The rate for gas produced from old fields was raised to USD 8.57/mmbtu (Metric Million British Thermal Unit) from USD 6.1/mmbtu. Simultaneously, the price of gas from difficult fields was increased to USD 12.46/mmbtu from USD 9.92/mmbtu. A further hike in domestic gas prices is expected in the next revision in April 2023.

Upward revision in gas prices is beneficial for upstream companies such as ONGC and Reliance as their realisation is likely to boost. Meanwhile, shares of Mahanagar Gas, Gail (India), and Indraprastha Gas dipped up to 4 per cent on the BSE. In the past six months, these stocks have outperformed the market by gaining up to 10 per cent, compared to a 1 per cent fall in the S&P BSE Sensex.