Shares of state-owned oil exploration & production companies, Oil and Natural Gas Corporation (ONGC) and Oil India surged up to 6 per cent on the BSE in Friday’s intra-day trade after the government hiked price of domestic natural gas to $8.6 per metric million British thermal units (MMBtu). The new price, scheduled to take effect from September 1, marks an increase from the current price of $7.85 mBtu.
Fitch Ratings, moreover, affirmed ONGC’s rating at ‘BBB-‘ with a stable outlook. Fitch expected ONGC’s upstream Ebitda over FY24-FY27 to improve, driven by increase in oil price assumptions, given lower uncertainty on demand destruction related to energy transition risks.
