Shares of oil & gas majors ONGC and Reliance Industries rose sharply today after reports, citing sources, said the Narendra Modi government may hike gas price by July 1.
The Press Trust of India quoting a source said the gas price hike is among the priorities of the oil ministry.
ONGC shares surged nearly 11 per cent to Rs. 465 while Reliance rose nearly 3 per cent to Rs. 1,122.
The increase in natural gas prices, based on a formula suggested by a panel headed by C Rangarajan, was to be originally effective from April 1. According to the Rangarajan formula, the gas prices were supposed to get nearly doubled from the current rate of $4.2 per unit. However, before a new rate could be unveiled, general elections were announced and its implementation got deferred.
The Rangarajan price formula was to be for a period of five years, with the price being revised quarterly using the approved formula.
Before being voted to power, the BJP had stated that it would like to review the formula if it comes to power.