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ONGC sees profit up $1.3 billion annually on gas price hike

MUMBAI: State-run producer Oil and Natural Gas Corp expects to add about 80 billion rupees ($1.34 billion) in profits annually on account of the increase in gas prices, itsfinance head said on Friday.

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

"We should see this increase provided other things remain the same and there are no conditions attached," 
ONGCBSE 4.85 %Finance Director Aloke Banerjee said over the telephone. 

ONGC gains about 20 billion rupees for every $1 per mmBtu increase in gas prices, he said. 

ONGC reported a net profit of 33.89 billion rupees for the fourth quarter ended March.