Why GST inclusion of natural gas is a crucial factor for gas producers and distributors
The stocks of the natural gas producers and distributors reported buoyancy on Thursday following the Prime Minister’s statement to bring gas under the Goods and Services Tax (GST) regime and a commitment to invest Rs 7.5 lakh crore in the country’s oil and gas infrastructure. Stocks of ONGC NSE -0.90 %, GSPL NSE -2.43 %, Indraprastha Gas, and Gujarat Gas gained by 4-9%.
The inclusion of gas under the GST regime may boost the gas volume and benefit companies across the value chain from upstream (ONGC, Oil India NSE 2.18 %), mid-stream (GAIL NSE 2.41 %, GSPL) and downstream (Indraprastha Gas, Mahanagar Gas, and Gujarat Gas).
