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Shares of Oil and Natural Gas Corp were up one per cent and GAIL (India) up 0.6 per cent as the Oil Ministry has set interim rules that exempt state-run upstream companies from giving any discount on crude and refined fuel sales if global oil prices average up to $60 a barrel this quarter.
Under the new rules, which are applicable only for the three months to June and would need the Finance Ministry approval to be extended, upstream firms will not have to pay any subsidy as long as crude prices average $60 or less, sources said.
For prices between $60 and $100 a barrel, the companies will have to give a discount of 85 per cent of the incremental price, said the sources who declined to be named as they are not authorised to speak to media.
Global oil prices are currently hovering at about $66 a barrel.
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