Low and stable gas prices result in huge gains for IGL, MGL
Given the volatility in petrol and diesel prices, more users are shifting to CNG-powered vehicles. PNG too is a 40% cheaper than commercial LPG prices.
City gas distribution (CGD) companies have continued to stay in favour with investors on the back of strong gas demand growth and firm earnings prospects. Domestic gas prices have remained unchanged during a recent review for the April-September period. The stable gas price environment bodes well for CGD companies from a demand perspective, and is also supportive of their margin profile.
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