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Company News

Indraprastha Gas Ltd
Indraprastha Gas slips after cut in domestic gas allocation
Apr 16,2025
According to a regulatory update, IGL has received a communication from GAIL (India)—the nodal agency for domestic gas distribution—stating that its allocation of domestic natural gas for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) for vehicles has been reduced by approximately 20%, effective 16 April 2025.

Currently, IGL receives gas at a government-fixed price of $6.75/MMBtu. The reduction in this cheaper domestic gas allocation is likely to increase input costs for the company.

To partially offset the shortfall, IGL has been allocated additional volumes of New Well Gas (NWG), equivalent to roughly 125% of the reduction in domestic gas. However, this gas comes at a steeper price—12% of the Indian Crude Basket (ICB).

The company noted that this shift in allocation and pricing structure is expected to affect its profitability. It has not yet outlined specific steps to mitigate the impact.

IGL is engaged in the marketing and distribution of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) within the National Capital Territory (NCT) of Delhi.

On a consolidated basis, net profit of IGL declined 31.49% to Rs 326.55 crore while net sales rose 5.70% to Rs 3758.76 crore in Q3 December 2024 over Q3 December 2023.

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