Oil Ministry allows freedom to companies to charge marketing margin - Angel Broking

Oil Ministry has given freedomto companies including Reliance Industries and GAIL to determine their marketing margins on sale of gas. However, the companies do not have freedom to charge marketing margin on urea and LPG. Regulation in charging marketing margin has been one of the key overhang on gas transmission companies after PNGRB had issued an order to lower marketing margin to Indraprasth Gas. Hence, we believe this move by Oil Ministry is likely to have positive impact on stock prices of gas transmission companies in the shortterm.

We maintain our estimates and ratings on the companies under our coverage until further review.

Source : Equity Bulls

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