State-run Oil and Natural Gas Corporation will see its pre-tax profit growing by over Rs 1,822 crore (Rs 18.22 billion) on a 12 per cent increase in natural gas prices as recommended by the group of ministers.

ONGC topline will grow by Rs 908.6 crore (Rs 9.09 billion) from gas prices for consumers being increased by Rs 350 per thousand cubic meters to Rs 3,200 per thousand cubic meters, credit and investment rating agency ICRA said in its report on 'Gas price hike - an impact analysis'.

Also Read GoM recommends hike in gas price

During 2002-03, ONGC had posted a record net profit of around Rs 10,500 crore (Rs 105 billion).

The GoM recommendation, which needs Cabinet approval for allowing national oil companies like ONGC and Oil India Ltd to sell gas from joint venure fields at market determined prices, would result in ONGC revenues growing by Rs 764.2 crore (Rs 7.64 billion).

With the gas pool account, which subsidises supplies to the north-east, being limited to Rs 100 crore (Rs 1 billion), it would present ONGC a net cost saving of Rs 150 crore (Rs 1.50 bilion), ICRA said.

The rise in natural gas price would result in a 10 per cent jump in variable cost of power generation while for fertiliser units, it would impact the manufacturing cost by Rs 255 per tonne of urea.

ICRA said the GoM recommendation of allowing the Hazira-Bijapur-Jagdishpur gas pipeline transportation charges hiked by Rs 10 per thousand cubic meters would see the state-run gas utility Gas Authority of India Ltd's topline growing by Rs 12 crore (Rs 120 million).

However, the rise in cost of gas used by Gail for petrochemicals and liquefied petroleum gas production, would dent its revenues by Rs 33.8 crore (Rs 338 million), it added.