City gas distribution shares trade weak: MGL, IGL fall up to 6%

Shares of city gas distribution (CGD) companies – Mahanagar Gas (MGL), and Indraprastha Gas (IGL) fell up to 6 per cent in Monday’s intra-day trade, after the government kept domestic gas prices unchanged at $8.6/mmBtu on a provisional basis from April 2023 to September 2023. The ceiling, however, was reduced marginally to $12.1/mmBtu from $12.5/mmBtu.

Among individual stocks, MGL dropped 6 per cent to Rs 925.75 due to profit booking, while IGL slipped 5 per cent to Rs 407.05. In comparison, the S&P BSE Sensex was up 0.04 per cent at 59,013, as of 10:24 am.

According to reports, domestic gas price was kept on hold as the government mulls recommendations of Kirit Parikh committee on fair pricing of natural gas.