(ET)
The more than doubling of natural gas prices and rise in oil prices will boost the 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.
“We also expect prices to be revised higher in the next reset in October 2022 in light of the high gas prices to date,” it said. Fitch said the natural gas price increase was largely in line with its expectations, driven by the rise in global prices in 2021.
