CNG Price: Indraprastha Gas Limited (IGL) said that further reduction in domestic gas supply to CNG companies may affect its profits. For the second time in a month, the government has cut the supply of cheap natural gas produced domestically to retail CNG vendors. The company, which retails CNG for vehicles and piped cooking gas to homes in the capital Delhi, and nearby cities, informed the stock market that domestic supply has been cut by about 20 percent since November 16.

The price of imported gas is double the rate of domestic gas.

Earlier, the supply was cut by about 21 percent from October 16. IGL said, 'Based on other information received by the company from GAIL (India) Limited (nodal agency for domestic gas allocation), it is told that the domestic gas allocation to the company has been further reduced from November 16, 2024.' IGL said that the changed domestic gas allocation is about 20 percent less than the previous allocation, which will have a direct impact on the company's profits. IGL gets domestic gas allocation at the government's fixed price (current $ 6.5 per million British thermal units). Its option is imported gas, whose price is double the domestic rate.

First 21 percent and now 20 percent cut;
After the cut in supply twice in a month and IGL indicating a decrease in profits, the price of CNG may increase in the coming times. The government has cut the supply of cheap gas to city gas distribution companies selling CNG to vehicles, first by 21 percent and now by 20 percent. After this step of the government, the dependence of the companies on expensive imported fuel will increase. To compensate for the reduction in cheap gas, the companies will have to buy expensive gas. This may increase the price of CNG.

The rate can increase by 5 to 6 rupees.
Recently, when the government cut the supply of cheap natural gas, the rating agency ICRA had predicted that the companies could increase the retail price by 5 to 6 rupees per kilo. But even after about a month, no change was made in the price. But this time after IGL's statement came out that it would have a direct impact on its profit. Now the price of CNG can be increased. It is expected that to maintain the profit, IGL can increase the price of CNG by 5 to 6 rupees.