"The gas price hike a step in the right direction, it will incentivise exploration firms however, any increase in subsidy burden will be detrimental," ONGC CMD Sudhir Vasudeva said while addressing an Assocham seminar here.
"ONGC, OIL will be hit if our share of subsidy compensation is tweaked," Vasudeva said.
He urged the government to protect interests of ONGC, OIL on subsidy account.
Last month, the government approved the proposal of doubling gas price from RIL's KG basin from $4.2 mmbtu to USD 8.4 mmbtu from April 1, 2014.
This is based on a formula suggested by the a committee headed by Chairman Prime Minister Economic Advisory Council C Rangarajan. This move will lead to increase in the price of electricity, CNG, etc