NEW DELHI: Shares of Oil India and ONGC rose up to 2 per cent in Friday's trade amid reports that the oil ministry will shortly send a proposal to the Cabinet that will allow the oil producers to charge higher gas price for oil fields in North East region.

High gas price at present is charged only from fields in difficult terrains such as deep sea and high pressure-high temperature areas.

Higher prices will mostly help ONGC and Oil India, which have discovered and producing fields in the North East, ET reported.

Following the report, shares of ONGC rose 1.18 per cent to hit a high of Rs 179.20 on BSE. Oil India advanced 2.31 per cent to hit a high of Rs 355.90.

The report suggested that government is looking to extend higher prices to all gas produced from new discoveries in the North East, as is available to deepwater fields in the country, an official said.

Price available to gas from difficult fields is currently $6.30 per unit, more than double of $2.89 per unit for output from other fields in the country.

“This will incentivise gas production in the region,” an official. told ET.

Difficult terrains, and lack of infrastructure makes exploration difficult in the northeastern states. Local protests and blockades interrupt production, while higher spares and consumables costs due to less available service provides in the region push up operating cost.