IGL shares declines 5.8%: CNG price increased by Rs 1/kg in Delhi-NCR
On Monday, April 7, shares of Indraprastha Gas Ltd. (IGL) are in focus following the announcement of a Rs 1-3 per kilogramme price increase for compressed natural gas (CNG) by the natural gas distribution company. The price has increased by Rs 1 per kg in Delhi and Rs 3 per kg in other markets. In the Delhi market, this is the first increase in CNG prices since June 2024.
IGL sells 70% of its CNG in Delhi, with the remaining 30% coming from other markets. CNG is now priced at Rs 76.09 per kg in Delhi and Rs 84.70 per kg in Noida and Ghaziabad as a result of the revision. IGL raised prices for markets outside of Delhi in November 2024. Even after November of last year, prices had increased in other regions besides Delhi.
The price change follows the government's announcement of a 4% increase in petrol prices through the Administered Price Mechanism (APM). For this year's April through September period, the APM petrol price has been set at $6.75 per mmBtu. Prices stayed at $6.5 per mmBtu for the first three months of the year.
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In accordance with the Kirit Parikh panel's recommendations, this is the first increase in the price of APM petrol since April 2023. The panel's recommendations, which went into effect in April 2023, included a clause that would raise petrol prices by 4% starting in the third year of implementation.
Shares of IGL are trading down by 5.70% at Rs 186.42 at NSE.
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