Gas shares hit 52-week highs as PM Modi reaffirms plan to incorporate pure fuel below GST

Shares of pure fuel firms rallied to their 52-week highs in the course of the intraday commerce on Thursday after Prime Minister Narendra Modi introduced that his authorities is dedicated to bringing pure fuel below the ambit of Goods and Services Tax (GST).
Gujarat State Petronet inventory climbed as a lot as 15.61 per cent to a 52-week excessive of Rs 276.60 on the BSE, whereas Indraprastha Gas surged 9.18 per cent to its 52-week excessive of Rs 594.85 apiece. GAIL (India) too rose 9.97 per cent to its 52-week excessive of Rs 147.75 per share, whereas Oil and Natural Gas Corporation (ONGC) gained 8.71 per cent to a 52-week excessive of Rs 111.10. Petronet LNG inventory inched 3.87 per cent to hit an intraday excessive of Rs 249.80.
Led by the steep rally within the fuel shares, the S&P BSE Oil & Gas index too climbed 5 per cent to hit its 52-week excessive of 15,725.86 earlier within the day. At 12:50 pm, the index was buying and selling at 15,625.58, up 648.51 factors (4.33 per cent).
Here’s how the oil and fuel shares have been performing:
S&P BSE Oil & Gas shares at 12:50 pm. (Source: BSE)
Prime Minister Narendra Modi on Wednesday stated that the federal government is dedicated to bringing pure fuel below the GST, to cut back the price of pure fuel and increase its utilization throughout the nation.
“We are committed to bringing natural gas under the GST regime. I want to tell the world, come, invest in India’s energy,” the prime minister stated at a basis stone laying ceremony for key oil and pure fuel initiatives in Chennai.
The inclusion of petroleum and pure fuel within the GST regime has been a constant demand of the business, which has famous that the cascading impression of central taxes and totally different tax regimes throughout totally different states was resulting in increased costs for finish customers. Industries that use pure fuel as an enter, reminiscent of energy and metal, are presently not in a position to declare enter tax credit score (ITC) on central and state taxes paid on pure fuel.