Investors will have their eyes on Indraprastha Gas Ltd. (IGL) when markets open on Monday, April 7, following the company’s decision to raise Compressed Natural Gas (CNG) prices by ₹1 to ₹3 per kilogram across its operational regions.
In the national capital, the price of CNG has been increased by ₹1 per kg, now retailing at ₹76.09. Meanwhile, consumers in Noida and Ghaziabad will see a sharper hike of ₹3 per kg, taking the revised price to ₹84.70 per kg.
This is the first time since June 2024 that CNG prices have been adjusted in Delhi, a market that contributes roughly 70% to IGL’s overall CNG volumes. The remaining 30% comes from other cities where the company operates.
The announcement comes on the heels of the government’s decision to raise natural gas prices under the Administered Price Mechanism (APM) by 4%, pushing the rate to $6.75 per mmBtu for the April–September 2025 period. This marks the first hike in APM gas prices since April 2023 and aligns with the recommendations made by the Kirit Parikh Committee, which had proposed a gradual increase from the third year of implementation.
Back in November 2024, IGL had revised prices for markets outside Delhi. However, this latest increase marks a comprehensive adjustment across its key regions.
According to a prior research note by Jefferies, a ₹2 per kg hike would have been sufficient to preserve IGL’s existing margins—suggesting the latest revision could help the company maintain or even improve profitability amid rising input costs.
Despite these adjustments, IGL’s stock remains significantly below its previous highs. As of Friday’s closing bell, shares were trading nearly 30% lower than their peak levels. Another major city gas distributor, Mahanagar Gas Ltd. (MGL), has also seen a decline of about 33% from its top levels.
Market watchers will now look to see if the price adjustment and improving margin outlook offer a catalyst for a rebound in these stocks.
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