IGL, MGL, Adani Total Gas Shares Rise Up To 3.5% As Centre Pushes PNG Connections
Shares of city gas distribution companies gained on August 19 after the government announced incentives aimed at accelerating the adoption of piped natural gas (PNG) among households. Indraprastha Gas, Mahanagar Gas and Adani Total Gas rose as much as 3.5%, 3.3% and 2.2%, respectively. The initiative comes as disruptions to fuel shipments linked to the US-Iran conflict have increased concerns…
On August 19, city gas distribution company shares surged after the government announced incentives to encourage households to adopt piped natural gas (PNG). Indraprastha Gas, Mahanagar Gas and Adani Total Gas shares increased by 3.5%, 3.3% and 2.2%, respectively. This move follows fuel shipment disruptions due to the US-Iran conflict, which have heightened concerns about India's reliance on imported cooking fuels.
The government aims to bolster domestic PNG adoption to lessen reliance on imported LPG and alleviate the financial strain from fuel subsidies. MGL has partnered with India Post to provide doorstep PNG meter reading services, starting with a pilot in South Mumbai. Over 1.60 lakh PNG connections were issued in Uttar Pradesh by June 24, as the expansion campaign gains momentum.
Under the new scheme effective September, city gas distributors will receive an additional 200 standard cubic metres of lower-cost domestic natural gas for each household that connects to their network and starts using and paying for PNG. This incentive is expected to motivate distributors to convert inactive connections into paying customers and expand pipelines to unconnected households.
The cheaper gas is anticipated to significantly improve the economics of new connections, reducing the payback period for investments in domestic PNG infrastructure from nearly a decade to around three years. With 17.4 million domestic PNG connections compared to 331.4 million active LPG customers as of July 1, India imports nearly 60% of its LPG, costing about $12 billion in 2025.
Gas companies like IGL, MGL, GAIL Gas, and Bharat Petroleum have introduced measures such as reduced installation charges to promote the switch to PNG. The government has also taken steps to strengthen PNG infrastructure, including faster approvals and standardized right-of-way charges, encouraging states to lower VAT on natural gas to 5%.
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