ONGC share price jumps 6.5% after govt slashes oil and gas royalty rates

Oil and Natural Gas Corporation (ONGC) share price surged 6.5% on Tuesday, 12 May, after the government reduced royalty rates on crude oil and natural gas production across multiple field categories, including deepwater and ultra-deepwater blocks, to boost domestic exploration.

The updated framework is anticipated to advantage state-owned companies ONGC and Oil India, as the royalty on onshore crude oil production has been reduced from 16.66% to 10%.