Gas price hike supports upstream profitability: Fitch
The more than doubling of natural gas prices and rise in oil prices will boost the profitability of oil and gas producers like ONGC and Reliance Industries Ltd, Fitch Ratings said on Tuesday. From April 1, the government has raised the price of gas for old fields of state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) to USD 6.1 per million British thermal unit for April-September 2022 from USD 2.9.
The rate for difficult fields of deepsea KG-D6 of Reliance has gone up to USD 9.9 per mmBtu from USD 6.1.
