HOPES OF HIKE IN ONGC PRICES FROM JULY1,STOCKS GAINES 9.5% HIGH AS NEW RECORD

Investors continued to buy shares of state-run  Oil and Natural Gas Corporation  (ONGC) on hopes of hike in natural gas prices from July 1. The stock gained as much as 9.5 percent to touch new record high of Rs 459.75 followed by  Reliance Industries  with 4.2 percent (intraday). The government is likely to hike natural gas rates from July 1 after a new price formulation is approved by the cabinet, a top oil ministry source said on Thursday. The first increase in natural gas prices, based on a formula suggested by a panel headed by C Rangarajan, was to be originally effective from April 1. However, before a new rate could be unveiled, general elections were announced and its implementation got deferred. "It (gas price revision) is an issue which needs attention. Decision needs to be taken before July 1," the source said. The ministry had on April 21 told Reliance Industries, who was made to sell natural gas from its eastern offshore KG-D6 fields at the old rate of USD 4.2 per million British thermal unit even after its term had expired, that a new rate would be announced by July 1. The ministry is expected to make a presentation on the issues pertaining to the oil and gas sector to Prime Minister Narendra Modi in next few days and a clear direction on how to proceed on gas pricing will emerge after that. Meanwhile, CNBC-TV18 reports quoting unnamed oil ministry sources that ONGC will come out with policy to monetise its marginal fields. At 11:56 hours IST, ONGC was quoting at Rs 445.75, up 6.22 percent and Reliance Industries rose 2.53 percent to Rs 1,115.10 on the BSE. Oil marketing companies like BPCL, HPCL and IOC gained around 2 percent, continuing upmove for the second consecutive session today after finance ministry's unnamed sources told CNBC-TV18 on Thursday that the ministry will consult prime minister's office (PMO) and finance ministry on hiking LPG and kerosene prices. It is learnt that oil ministry will consult PMO and finance ministry on one-time LPG price hike and also extinguishing LPG loss. Currently, the under-recovery of PSU oil companies on kerosene stands at Rs 32.87 per litre and LPG at Rs 432.71 per cylinder. (With inputs from PTI)