IGL shares jump after CNG price hike in Delhi-NCR, MGL gains too; key details

Shares of Indraprastha Gas Ltd (IGL) climbed 6 per cent in Tuesday's trade, following a Rs 2 per kg hike in CNG prices. CNG prices in Delhi-NCR now stands at Rs 83.09 per kg, following the fourth hike since May 15. IGL retail CNG prices were hiked with effect from 6 am today. While some reports suggested that Mahanagar Gas Ltd (MGL) has also raised CNG prices, but the company's CNG rate card suggests no such move, at the time of writing this note. The MGL stock, nonetheless, was quoting 3 per cent higher. 

Shares of IGL gained 5.95 per cent to Rs 170 on BSE. IGL provides CNG as auto fuel to residents of the areas of NCT of Delhi; districts Gautam Budh Nagar, Ghaziabad, Hapur, Muzaffarnagar, Shamli, uncovered parts of Meerut & Kanpur, Fatehpur and Hamirpur in Uttar Pradesh; districts Rewari, Gurugram, Karnal and Kaithal in Haryana; and, district Ajmer, Pali & Rajsamand in Rajasthan. 

Following the price hikes, CNG rates in the said areas ranged from Rs 92.44/- per per Kg (for NCT of Delhi) to Rs 94.42 per kg for regions like Kanpur, Fatehpur and Hamirpur. 

In the case of MGL, it is the sole authorized distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, Thane and Raigad district of Maharashtra. Promoted by GAIL (India) Limited. MGL distributes CNG for motor vehicles and PNG for domestic, commercial as well as industrial use.

MGL shares rose 3.13 per cent to Rs 1,108.15. Meanwhile, another city gas distributor Gujarat Gas was trading 0.78 per cent higher at Rs 383.95.