INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Budget 2020 had a fair dose of measures for the oil - gas sector, including an increase in petroleum subsidies, expansion in gas
grid and abolition of anti-dumping duty on PTA (purified terephthalic acid)
Analysts see neutral impact on the sector from these announcements.
IIFL Securities said the Budget has raised allocation on LPG and
Within this, LPG subsidy has risen 9.4 per cent to Rs 37,300 crore while provisions for kerosene has been reduced (perhaps due to declining
budgeted at a crude price higher than $68 a barrel, a level crude price is unlikely to touch anytime soon
have fallen 5 per cent in the last two days to Rs 103.40
Oil India has fallen 5 per cent in the two-day period to Rs 123.10
OMCs IOC and HPCL have declined 4-5 per cent while BPCL has gained 0.82 per cent in the last two days.
Kotak Mutual Fund estimates gross
under-recovery at Rs 31,500 crore for FY21, valuing crude at $65 a barrel
very low sulphur fuel oil (VLSFO) to nil from 10 per cent will have a negative impact on GRM of refineries, Kotak said
butane to 2.5 per cent from 5 per cent is also a negative for oil players.
The government unveiled a proposal to expand the gas pipeline
network from 16,200 km to 27,000 km
Reliance Securities said it would benefit gas transmission companies and city gas distributors such as GAIL, GSPL, IGL, Gujarat Gas,
Gail has dropped 4.98 per cent (Saturday and Monday combined) to Rs 114.45, Gujarat Gas has declined 1.9 per cent to Rs 282.95, Mahanagar
Gas has fallen 0.71 per cent to Rs 1165.20
Also, transparent pricing is necessary for higher utilisation of the gas grid
