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  5. MGL, IGL shares jump after OMCs slash commercial LPG gas price by ₹30. Details here

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MGL, IGL shares jump after OMCs slash commercial LPG gas price by ₹30. Details here

Upstox
By Upstox News Desk

3 min read | Updated on July 01, 2024, 11:16 IST

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SUMMARY

Shares of Mahanagar Gas, one of the major gas distributors, recorded a high of ₹1,658.5 apiece during the early hours of the trading session. This was up 3.8% as against the last closing price.

The rate of LPG cylinders supplied to households remains unchanged

The rate of LPG cylinders supplied to households remains unchanged

Shares of city gas distribution companies, including top suppliers Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd (MGL), jumped during the trading session on Monday, July 1, after it was announced that oil marketing companies (OMCs) have slashed the price of commercial LPG.

The rate of 19 kg cylinder of liquified petroleum gas (LPG) supplied to commercial establishments has been been reduced by ₹30, with effect from July 1, the OMCs announced. This will bring down the per cylinder price in New Delhi to ₹1,646.

Following the announcement, stocks of city gas distribution companies opened in the green. IGL started the day's trade at ₹506.7 apiece on the NSE, and within the first hour of trade, it peaked to a high of ₹518.45, up 2.9% as against the last closing price.

At 11:00 am, IGL was trading 2.14% higher at ₹514.5 apiece.

Also Read: NIFTY50, SENSEX trade in green; Reliance and Bharti Airtel lead the gains

MGL recorded a sharper surge, as its stock clocked an intraday high of ₹1,658.5, up 3.8% as against the previous closing price, during the early hours of the trading session. At 11:00 am, MGL was trading 3.37% higher at ₹1,650.7.

Among other gas distributors, Gujarat Gas was trading 0.64% higher at ₹632.5 apiece on the NSE; and GAIL Gas was up 0.19% at ₹219.96.

4th consecutive cut in commercial LPG gas rates

The commercial gas prices were revised downwards for the fourth consecutive month by the OMCs. The price was lowered by ₹30.5 on April 1, followed by a cut of ₹19 announced on May 1, and a sharp reduction of ₹69.5 on June 1.

The details behind the latest price adjustments were not shared, but the rates are usually determined by the OMCs after taking into account an array of factors, ranging from international prices to supply-demand dynamics.

Meanwhile, the rate of LPG cylinders supplied to households has remained unchanged over the past three months. The retail price currently stands at ₹803 per 14.2 kg cylinder in New Delhi.

The Centre had on March 8 – a week before the announcement of general election dates – announced a reduction of ₹100 in the prices of 14.2-kg LPG cylinders used by households.

The price of 5-kg free trade LPG (FTL) cylinders, also referred to as indane cylinders, was reduced by OMCs by ₹7.5 on April 1. The refilling rates of these cylinders range from ₹500-₹700.

Uplearn

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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