Summary of this article
Gas distribution stocks rallied after the latest CNG price hike, led by Adani Total Gas, IGL and MGL
IGL has raised CNG prices by Rs 6 per kg since May 15 amid rising global energy costs
The hikes improved sentiment in gas stocks and lifted the Nifty Oil & Gas index
Adani Gas, IGL, MGL Share Price: Shares of gas distribution companies jumped up to 11 per cent on May 26, after prices for compressed natural gas (CNG) were hiked for fourth time in less than two weeks amid rising global energy costs.
Adani Total Gas (ATGL) led the rally, with its shares surging as much as 11 per cent to Rs 731.50 apiece, followed by Indraprastha Gas (IGL), which surged up to nearly 6 per cent to Rs 170 apiece, and Mahanagar Gas (MGL) up to 3.16 per cent to Rs 1,108.50 per share. ONGC shares also gained up to 1.50 per cent to Rs 289.25.
Since May 15 when prices were hiked for the first time, ATGL shares have rallied nearly 16 per cent, IGL surged nearly 10 per cent.
The rally in these stocks lifted the Nifty Oil & Gas index by as much as 0.45 per cent. Dragging the index were Petronet LNG, and oil marketing companies such as Bharat Petroleum (BPCL), Indian Oil (IOCL), and Hindustan Petroleum (HPCL), which are witnessing profit booking after the rally in previous session on fourth hike in the price of petrol and diesel. Petrol and diesel prices have seen a cumulative hike of about Rs 7.50 per litre since May 15.
Another company related to natural gas, Positron Energy's shares were also locked in at 5 per cent at Rs 207.25 apiece. The company is an oil and gas consulting firm that provides technical advisory, project management, and gas distribution solutions to industries and city gas distributors.
CNG Prices Hiked By Rs 6 Per Kg In Two Weeks
IGL, North India’s largest city gas distributor, raised CNG prices by Rs 2 per kg on May 26 after earlier hikes of Re 1 per kg each on May 23 and May 17, and Rs 2 per kg on May 15. With the latest revision, the company has increased CNG prices by a total of Rs 6 per kg since May 15.
Customers will now have to pay Rs 91.70 per kg for CNG in Delhi, Rs 88.12 per kg in Gurugram, and Rs 92.44 per kg in Ajmer.
IGL’s price hikes are largely in line with other city gas distributors across the country, many of which have also raised prices gradually in multiple small increases.
The latest hike in CNG prices comes amid volatility in global crude oil prices and persistent geopolitical tensions in West Asia. CNG is widely used as a transportation fuel across India by public transport fleets, taxis, and private vehicles.
