Shares of consumer distribution gas companies like IGL, MGL and Gujarat Gas surge in trade on expectations that the Kirit Parikh panel’s recommendation to the cabinet to keep $4-6.50/mmBtu gas price band will be considered. According to media reports, the cabinet in its meet this week is likely to consider the proposals made by the committee, which will be a big positive for these gas companies.
Shares of IGL surged over 4% in trade on Wednesday, MGL share price surged over 3% in trade, while shares of Gujarat Gas jumped over a percent and hit a day’s high of Rs 466 per share. If the recommendations of Kirit Parikh panel are approved then it would lead to lower gas costs for city gas distribution cos mentioned above.
