New Delhi, May 12 -- Oil and Natural Gas Corporation (ONGC) share price surged 6.5% on Tuesday, 12 May, after the government reduced royalty rates on crude oil and natural gas production across multiple field categories, including deepwater and ultra-deepwater blocks, to boost domestic exploration.

Similarly, another oil PSU, Oil India, witnessed a 9% increase in its stock as the updated framework is anticipated to benefit upstream oil companies.

The government has reduced the royalty on onshore crude oil production from 16.66% to 10%. Royalty on offshore crude production has been cut to 8% from 9.09%, while the rate on natural gas has been lowered to 8% from 10%, following the introduction of a new flat deduction formula.

Royalty repr...