Oil and Gas stocks tumble

Mumbai, June 4 (UNI) Oil refinery stocks lost ground on the Bombay Stock Exchange today after reduction in jet fuel prices by 1.9 per cent.

IOC declined by 3.2 per cent to Rs 450, HPCL was down by 4 per cent to Rs 284 and BPCL dropped by 1.3 per cent to Rs 355.

Oil exploration stocks also were under selling pressure. ONGC dropped by 1 per cent to Rs 902 and Reliance Industries (RIL) was down by 0.5 per cent to Rs 1,744.

As per market reports, RIL has inked a pact with Gas Authority of India (GAIL) to supply, transport and market gas. Under the agreement, RIL would be allowed to use state-run GAIL's pipeline network in states such as Andhra Pradesh and Madhya Pradesh. In return, GAIL would get to market a portion of RIL's gas from the Krishna-Godavari basin.

However, since the two companies have not reached a final decision regarding the price of the gas, a formal announcement is yet to be made, market analysts tracking the energy sector disclosed.

UNI