ONGC Surges 6.6% as Govt Slashes Crude Oil Royalty Rates
Shares of Oil and Natural Gas Corporation Limited climbed to a day high of Rs 299.30 on NSE on 12 May, rising 6.60% intraday, after the Ministry of Petroleum and Natural Gas notified revised royalty rates on crude oil and natural gas production that directly cut costs for India’s state-run... The post ONGC Surges 6.6% as Govt Slashes Crude Oil Royalty Rates appeared first on Equitypandit.
Shares of Oil and Natural Gas Corporation Limited climbed to a day high of Rs 299.30 on NSE on 12 May, rising 6.60% intraday, after the Ministry of Petroleum and Natural Gas notified revised royalty rates on crude oil and natural gas production that directly cut costs for India’s state-run upstream producers.
The notification, issued on 8 May, lowered the onshore crude oil royalty to 12.5% from 20% for nominated blocks operated by companies such as ONGC and Oil India, a reduction of 7.5 percentage points on an ad valorem basis calculated on the well-head price. Offshore crude now attracts 8%, eased from around 9% previously. For natural gas, the headline rate drops to 9% from 10%, with a new flat deduction formula bringing the effective rate down further to around 8%, meaning the actual saving runs deeper than the headline cut alone suggests.
Oil India jumped hard on the same news. The Duliajan-based upstream producer was up around 9% intraday on 12 May against a previous close of Rs 455.10 on Monday.
Petroleum Minister Hardeep Singh Puri described the revision as a ‘new era’ for India’s oil and gas regulatory regime. He said the move follows the 2025 amendments to the Oilfields (Regulation and Development) Act and removes inconsistencies that had built up across different royalty frameworks over the years. Producers could also benefit from GST-linked savings that may improve project economics by a further 18%, per the government’s statement.
ONGC’s 52-week high stands at Rs 307.50, touched on 29 April 2026. Its 52-week low was Rs 228.61, hit on 17 December 2025. The stock is up 25.77% year-to-date. At 11:24 am on 12 May, ONGC was trading at Rs 298.15 on the NSE, up 6.10% on the day.
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