Although the weakening rupee is a windfall for the state-run Oil and Natural Gas Corporation (ONGC), it has adversely impacted the fertilizer and power companies which are now being forced to shell out more for the natural gas they consume.
The weakening rupee has not allowed oil marketing companies (OMCs) to reduce petrol prices but has surely resulted in a Rs.1,000-crore windfall for ONGC due to the decision of the Petroleum and Natural Gas Ministry to fix domestic natural gas prices in U.S. dollars instead of the earlier practice of rupee rates.
With 52 million cubic metres per day of gas production, ONGC will gain Rs.1,043.50 crore on an annualised basis at the higher exchange rate.
Mukesh Ambani-owned Reliance Industries Limited (RIL) stands to gain Rs.993.40 crore on production of 45 mcmd of gas from its eastern offshore KG-D6 fields in the full year due to weakening of the rupee.
