Domestic LPG and PNG suppliers are in the limelight today morning. Indraprastha Gas rose almost 3% to Rs.359.20, Mahanagar Gas was up over 2% at Rs.930.75 and Adani Gas was up over 5.5% to Rs.136.30. PSU suppliers, HPCL rose 7% to Rs.322 and BPCL was up 9% at Rs.511.
All had expected a price cut to come up but the Ministry of Petroleum cut more than expected. Yesterday, the oil ministry announced that the price of gas produced from domestic fields has been cut to $3.23 per metric million British thermal unit (mmBtu) from $3.69/ mmBtu. The new price will be effective today, Oct. 1 till March 2020.
This is the first price cut in one year which saw four consecutive price hikes.
The prices announced today are a tad lower than the average production cost of ONGC at $3.59/mmBtu.
Lowering of gas prices benefits the fertiliser units too as it brings down the cost of production. That why Chambal Fertilisers, RCF, GNFC, Coromandel Agro, Deepak Fertilsers – all are up very strongly in the green.