Oil explorers slump on gas pricing worries
Reuters Market Eye - Oil explorers slump on worries higher gas pricing might be allowed only for incremental output, which dealers say can limit upside for such companies for at least the next two years.
"The petroleum ministry has proposed that higher gas price as per the Rangarajan formula could be allowed only for incremental production over and above the current levels, as an alternative to applying the formula unconditionally from July 1," a report in Financial Express said on Thursday.
Oil and Natural Gas Corp (ONGC.NS) slumps 6.3 percent while Oil India (OILI.NS) is down 5.2 percent.
Among, private oil and gas producers Reliance Industries (RELI.NS) falls 2.8 percent while Cairn India (CAIL.NS) is down 0.8 percent.
(Reporting by Abhishek Vishnoi)
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