Oil explorers slump on gas pricing worries

Thu Jun 19, 2014 2:06pm IST

A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts ofAhmedabad March 2, 2012. REUTERS/Amit Dave/Files

A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts ofAhmedabad March 2, 2012.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

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)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
indianmoney wrote:
Gas pricing has been an issue which is affecting both the Government and the refinery Companies.While refineries want a higher price for the gas the Government wants to keep prices as low as possible to avoid an increased price of electricity.With refineries/gas exploration understating production they are at loggerheads with the Government.Increases prices for gas beyond the prescribed limits should be the way out.

Jun 19, 2014 4:56pm IST  --  Report as abuse
indianmoney wrote:
Gas pricing has been an issue which is affecting both the Government and the refinery Companies.While refineries want a higher price for the gas the Government wants to keep prices as low as possible to avoid an increased price of electricity.With refineries/gas exploration understating production they are at loggerheads with the Government.Increases prices for gas beyond the prescribed limits should be the way out.

Jun 19, 2014 4:56pm IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage