Mumbai: Gujarat Gas Co. Ltd surged as much as 15% to its highest level since 13 January after the company said it got approval to start city gas distribution in Thane.

Analysts said the move to enter distribution in the lucrative Mumbai market will significantly improve the company’s earnings.

The govt’s push for CNG and domestic piped natural gas (PNG) will only benefit city gas distributors, according to analysts.

Gujarat Gas shares were trading 13.5% higher at 757 apiece on BSE at 10:30am, while the benchmark Sensex was down 60 points, or 0.2% to 28,984.