Shares of Indraprastha Gas Mahanagar Gas tumble

New Delhi, Nov 18 (PTI) Shares of Indraprastha Gas Ltd and Mahanagar Gas Ltd slumped on Monday after the government for the second time in a month cut supplies of cheaper domestically produced natural gas to CNG retailers, who have warned of their profitability being hit.
     The stock of Indraprastha Gas tanked 19.93 per cent to Rs 325.05 apiece on the BSE.
     Shares of Mahanagar Gas also tumbled 13.79 per cent to Rs 1,130.55 each.
     Indraprastha Gas Ltd - the firm that retails CNG to automobiles and piped cooking gas to households in the national capital and adjoining cities - in a stock exchange filing said domestic supplies have been cut by about 20 per cent effective November 16.
     Previously, supplies had been cut by about 21 per cent effective October 16.
     "Based on another communication received by the company from GAIL (India) Ltd (the nodal agency for domestic gas allocation), this is to inform that there has been further reduction in domestic gas allocation to the company effective from November 16, 2024. The revised domestic gas allocation to the company is approximately 20 per cent lesser than previous allocation which will have an adverse impact on profitability of the company," IGL said.
     IGL gets domestic gas allocation for meeting the requirement of CNG sales volumes at the pricing fixed by the government (presently at USD 6.5 per million British thermal unit).
     The alternative to this is to use imported gas, which is twice the domestic rate.
     "The company is exploring all options to address the issue," IGL said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)