Shares in state-run refiners fell on Monday after the government said it was considering raising the quota of subsidized cooking gas (LPG) cylinders from nine to 12 per year. Oil Minister Veerappa Moily said the cap will be raised, though the final decision will be taken by the Cabinet Committee on Economic Affairs, which is likely to meet anytime this week.
Raising the cap on the number of subsidized LPG cylinders will lead to an additional subsidy burden of Rs. 4,000 crore for the government, analysts estimated.
The BSE energy benchmark traded 0.6 per cent lower as of 09.45 a.m. as against a 0.2 per cent dip in the broader Sensex.
Shares in BPCL traded down 1.4 per cent at Rs. 334.85, while HPCL shares were down 1.2 per cent to Rs. 233.80. Indian Oil shares traded 1 per cent lower.
Analysts were disappointed with the likely move, seen as "populist" ahead of the elections due by May. Read more..
Raising the cap on the number of subsidized LPG cylinders will lead to an additional subsidy burden of Rs. 4,000 crore for the government, analysts estimated.
The BSE energy benchmark traded 0.6 per cent lower as of 09.45 a.m. as against a 0.2 per cent dip in the broader Sensex.
Shares in BPCL traded down 1.4 per cent at Rs. 334.85, while HPCL shares were down 1.2 per cent to Rs. 233.80. Indian Oil shares traded 1 per cent lower.
Analysts were disappointed with the likely move, seen as "populist" ahead of the elections due by May. Read more..
Source: Hindi News & Latest Business News India
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