- Oil marketing companies (OMCs) allowed to increase diesel prices by 50 paise/litre per month. Govt increases LPG cylinder cap from 6 to 9
- Net annual savings of Rs228bn from diesel price hikes, free pricing for bulk sales and rise in LPG cylinder cap
- Although we like ONGC/Oil India, we believe amongst these ONGC is the best play on pricing reforms given its size and consolidated production growth by FY15
- Within OMCs HPCL more leveraged to pricing reforms, though believe BPCL a safer bet given cushion from upstream valuations.