OIL expects $167 mn annual profit rise after gas price hike

Jun 28, 2013, 10.18 AM IST

Oil India benefits a great deal as gas prices rise from USD 4.2 to USD 8.4

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OIL expects $167 mn annual profit rise after gas price hike

Oil India benefits a great deal as gas prices rise from USD 4.2 to USD 8.4

Like this story, share it with millions of investors on M3

OIL expects $167 mn annual profit rise after gas price hike

Oil India benefits a great deal as gas prices rise from USD 4.2 to USD 8.4

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State-run producer Oil India Ltd expects to increase profit by Rs 1000 crore annually on account of the increase in gas prices, its finance head said on Friday.

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On Thursday, the government approved a gas price hike for the first time in three years. Indicative pricing suggests domestic gas could rise to around USD 8.4 per mmBtu from April 1, 2014, compared with USD 4.2 per mmBtu currently.

"This will incentivise us to get more aggressive in exploration activity," Oil India Finance Director TK Ananth Kumar told Reuters.

Natural gas segment contributes about 10-12 percent of Oil India's revenues.

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