look news india
Decision may be postponed till Maharashtra and Jharkhand elections
However, it is expected that CNG distribution companies may postpone the decision to increase gas prices till the elections in Maharashtra and Jharkhand are over. If this happens then you can be satisfied that you will not have to face the brunt of inflation on festivals like Diwali.
Indraprastha Gas Ltd (IGL), a CNG seller in Delhi-NCR and Mahanagar Gas Ltd, a CNG distributor in areas like Mumbai, have informed the stock market that the supply of locally produced gas has been cut. This gas was available to them at half the price of imported gas.
GAIL reduced gas supply
IGL says that the company gets supply of CNG at the government fixed price of $ 6.5 per MBTU. This supply of domestic gas is provided to meet the sales volume. But according to the information received from the nodal agency GAIL (India) Limited, since October 16, the quantity of domestic gas supplied to the company has decreased significantly. According to IGL, the supply of its cheap domestic gas has declined by about 21 percent.
Mahanagar Gas Limited (MGL) also says that its supply of cheap domestic gas has now been reduced by 20 percent. The company is considering several options to meet this shortage. It is being said that companies will now have to buy expensive imported gas to compensate for the shortage of cheap gas. Due to this the price of CNG may increase in the market.
CNG may become costlier by Rs 5.50
Girish Kadam, senior vice president of rating agency ICRA, says that the city's gas distribution companies will have to compensate for the 20 percent shortfall in allocation of cheaper gas with more expensive imported LNG. If gas companies want to maintain their current profits and margins then they should increase the price of CNG by Rs 20. May have to be increased from 5 to 5.50.
