ONGC,Oil India shares gain,hopes for higher sale prices to refiners

The two companies have requested the govt to cut the discounts they must provide to refiners.

Written by Reuters | Published:May 14, 2013 11:21 am

Oil and Natural Gas Corporation Ltd and Oil India Ltd gain on a report from The Financial Express that the two companies have requested the government to cut the discounts they must provide to refiners on crude purchases as oil prices have softened,citing unnamed sources.

The report adds that ONGC has sought to sell oil at $60 per barrel,up from the current $47 per barrel,while Oil India wants to sell at $65 per barrel,up from the current $54-55 per barrel.

Officials at both companies confirmed to Reuters they have asked the government to reduce the share of subsidy that these upstream companies provide state refiners through discounts in oil sales,but decline to specify the amount asked.

ONGC shares up 2.1 percent and Oil India shares gain 1.8 percent.

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