Gas distributors rise
Yesterday, the Govt slashed the price of natural gas by a huge 25% to $1.79, which is expected to bring benefit all across, right from electricity, fertilizer and fuel for auto sector.
Natural gas price in India touched the lowest rate on record after the government on Wednesday slashed the price by 25% to $1.79/ million British thermal unit for six months beginning October 1 from the current $2.39.This is the third price cut in one year.
Even the price paid to producers of new gas from deep seas has been slashed from $5.61/mmBtu to $4.06/mmBtu.
This is very good for gas distributors and that’s the reason why we see a spurt today in the stock price of Indraprastha Gas, Mahanagar Gas and Gujarat Gas.
On the other hand, it does not bode well for the gas producers, mainly ONGC and Oil India as a price cut means their losses will only widen further. Both the stocks are in the red currently.