In a notable development, state-owned Gujarat Gas Limited (GGL) has been expanding its compressed natural gas (CNG) and piped natural gas (PNG) network. Further, the geographical expansions planned by the company will add to the volume outlook for the city gas distributor. Although PNG prices for the company rose to Rs 63 per standard cubic metre (scm) in December 2021, industry experts expect volume growth to be 16 per cent over 2021-23 period for Gujarat Gas.

Over the last year, Gujarat Gas outperformed its peers owing to higher volume growth, limited impact of the second wave of Covid-19, valuation re-rating, and four timely price hikes. With prospects of another Rs 5-8 price hike in the near term, the underlying demand continues to remain intact due to government policies.