Bangalore: The BSE Oil and Gas index gained 1.79 percent last week even as the Sensex ended in the red due to the European debt crisis. Shares of state-run natural gas producers ONGC and Oil India went up after the government's decision to more than double the price of natural gas produced from nomination blocks. The base price of gas supplied by state firms will rise to $4.2 per million British Thermal Units, the same as the rate approved for Reliance Industries, bringing about near-uniformity in the cost of the fuel in India. ONGC jumped 8.72 percent and Oil India gained 9.09 percent. Shares of three state-run oil marketing companies - BPCL, HPCL and Indian Oil Corporation rose by 2.37 percent to 3.22 percent on expectations that the government may deregulate oil prices after it raised the price of natural gas produced by state firms from nomination blocks. Index heavyweight Reliance Industries (RIL) rose 0.16 percent to 999.90. The stock was volatile as it hit a high of 1013.75 and low of 993.40. The company said in view of the threat from cyclone Laila, the company has exercised caution and suspended all drilling operations in the East coast. All production operations on the FPSO (Floating Production Storage and Offloading) vessel operating in the KG D6 block were also suspended, according to RIL.