According to the government notification, the centre is planning to allocate an additional 200 standard cubic metre (SCM) of gas for domestic piped natural gas (PNG) use.
The focus is on expanding PNG connections across the country. The additional gas allocation could help city gas distributors meet the rising household demand.
This move is part of the government’s push to increase domestic use of natural gas.
More PNG availability could also reduce the dependence on costlier alternative fuels for households.
In an interaction with CNBC-TV18 on Wednesday, Probal Sen of ICICI Securities said that the additional APM gas allocation will be beneficial for both IGL and MGL. He anticipates this move to result in a 50% jump in gas production.
Shares of IGL are trading 3.65% higher on Wednesday at ₹154.84. The stock is still down 20% so far this year.
Shares of Mahanagar Gas are also trading 3.8% higher on Wednesday at ₹1,153.7. With this move, the stock has turned positive on a year-to-date basis.
Shares of Adani Total Gas are trading 2.5% higher on Wednesday at ₹663.65. The stock is down 7% in the last one month and has gained 11.4% so far this year.
However, shares of Gujarat Energy have given up their gains, having made an intraday high of ₹277.64. The stock now trades 0.3% lower at ₹268.5, and is down 21% so far this year.
