GAIL gains on subsidy exemption media report

Reuters Market Eye - Shares in GAIL (India) Ltd gain 3.9 percent after the Economic Times reported the oil ministry has decided to exempt the company from having to compensate state fuel retailers for selling diesel, kerosene and cooking gas below market rates, citing unnamed ministry officials.

The oil ministry has reasoned that because GAIL, as a gas producer, does not make windfall profits when international crude oil and gas prices soar, it should not be held liable for subsidies, the newspaper reported.

A GAIL spokesman declined to comment.

Oil ministry officials also did not comment on the media report.

(Reporting by Abhishek Vishnoi)