In a major development, analysts are expecting a price hike for domestic natural gas during the next scheduled price revision in October 2021. The price hike is expected to put pressure on the profit margins of compressed natural gas (CNG) suppliers such as Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL), and may lead to a rise in retail prices as well.
The price of domestically produced natural gas will increase by 50-60 per cent for the October 2021 to March 2022 period as per the Oil and Natural Gas Corporation. Analysts expect this spike to reflect in both CNG pricing and margins for key players such as IGL and MGL.