ONGC jumps on kerosene fare hike

ONGC currently figures out amongst the top five gainers on the BSE. Intra day, the stock went up to a high of Rs.241.30 and currently remains 4% up at Rs.236 levels. Its 52-week high is at Rs.295.45 and low is at Rs.188.

After a 50 paise/litre hike in late June, the Govt has mustered the courage to propose 25 paise/litre per month price hike, till August 2017 in the price of kerosene. A fuel usually used by those in the lowest rung of the economic ladder, usually no one tinkers with kerosene price for obvious political reasons. But this fare hike was long overdue.

This price hike will naturally make ONGC happy and in a TV interview, former Chairman and Managing Director RS Sharma said that this could lead to a saving of Rs.800 crore annually and by 2017, entire burden of subsidy will get wiped out.