India's state oil companies' shares surge on diesel price hike

Last Updated: Sat, Jan 19, 2013 18:41 hrs

MUMBAI, Jan 18 (Reuters) - Shares in state-run oil firms such as ONGC surged for a second consecutive session on Friday after the government's diesel price hike was seen reducing their subsidy burden.

Producer Oil and Natural Gas Corp Ltd was up 9.4 percent as of 0356 GMT, adding about $6 billion in market value.

Refiner Hindustan Petroleum Corp Ltd was up 7.3 percent while Bharat Petroleum Corp Ltd NS> was up 6.3 percent. Oil India Ltd was up 9.4 percent.

The government fixes retail prices of liquefied petroleum gas, kerosene and diesel, leading to revenue losses at state-run companies.

(Reporting by Rafael Nam; Editing by Sunil Nair)

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