Are CNG prices going to increase once again?
After all, with what news Mahanagar Gas Ltd. And CNG stocks like Indraprastha Gas Ltd are seeing a decline, let us know.
Shares of Mahanagar Gas Ltd saw a fall of 2 percent during intraday. So the shares of Indraprastha Gas Limited also fell by 2 percent. CNBC-TV18 sources report that gas distributor companies have said that they may need to increase prices after 20% reduction in gas allocation through the Administered Price Mechanism (APM). Is. City gas distributors believe that CNG prices may increase by about ₹6 per kg.
For the reduced Administered Price Mechanism gas allocation, spot LNG is likely to make losses, with current prices ranging between $11 to $12 per million metric British thermal units (mmbtu), while APM gas is priced at $6.5 per mmbtu. Now it is up to the companies whether they are going to pass on the full impact of the expensive purchase costs to the customers. The mix of APM gas allocation is now seen reducing from 69% to 70% to 49% to 50%.
The reduction in APM gas allocation is due to natural decline in production and higher share being allocated to ONGC Petro Additions Limited (OPaL). IGL shares are now trading at ₹515, down 0.8%. Mahanagar Gas shares are down 1% at ₹1,768.2, while Gujarat Gas shares are down 1.5% at ₹577.8.