Oil and gas price hike supports upstream profitability of producers: 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.
The “increase in natural gas prices by the Indian government, along with a recent revision in our Brent crude oil price assumptions to USD 100 per barrel in 2022, from USD 70 earlier, and USD 80 in 2023, from USD 60 previously,
