Gas stocks mixed as government cuts gas prices

NEW DELHI: Shares of gas companies had a mixed reaction to the government’s move to cut natural gas price to $3.2 per mmBtu from $3.82 per mmBtu. Gas distributors surged with shares of Gujarat Gas, Petronet LNG and IGL climbing up to 5 per cent. However, gas producers like ONGC, GAIL and Reliance Industries slipped up to 3 per cent.

As per the new gas pricing formula approved by the NDA government in October 2014, gas prices are to be revised every six months. The next change is due on April 1.

ONGC shares slipped 2.59 per cent to Rs 212.90 on the BSE. Reliance Industries was down 0.2 per cent and GAIL was down 1.5 per cent. Gujarat Gas gained 5.46 per cent, IGL 1.09 per cent and Petronet LNG 0.44 per cent.