ONGC may save Rs 800cr from kerosene price hike-RS Sharma

NEW DELHI Shri RS Sharma, CMD, ONGC is very happy with the government's announcement of hike in kerosene price, which will help reduce the subsidy burden of these companies.
 
Former Chairman and Managing Director RS Sharma of the upstream oil company ONGC is very happy with the government's announcement of hike in kerosene price, which will help reduce the subsidy burden of these companies. 
 
According to him investors want certainty and a proper subsidy sharing mechanism will bring that making the investors bullish on the sector. Also, the companies can make investment decisions accordingly. Now with the oil companies likely to get a go ahead to hike kerosene price by 0.25 paise a litre per month till April 2017, the upstream companies will save around Rs 1000 crore annually. 
 
And with ONGC sharing 80% of the subsidy burden, it will save around Rs 800 crore, says Sharma. Sharma feels, in absolute terms this hike might not make a big difference but just the certainty that there is a mechanism in place will boost investor sentiment towards these companies.

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