IGL spikes on SC hearing today

Indraprastha Gas Ltd (IGL) is up in the green today, up over 2% at Rs.265, with good volumes of 46,000 shares today compared to around 50,000 over past two weeks average.

The stock is up once again on expectations over a favourable Supreme Court verdict today over the ongoing PNGRB price case. The case is set for a hearing today and as usual, there is hope that the ruling will be in favor of IGL.

IGL has filed a plea challenging an order from the PNGRB to cut it’s network tariff to R38.58 per million British thermal unit against R104.05, down by around 63%. The regulator fixed CNG compression tariff at R2.75 a kg against R6.66/kg charged by IGL.  The ministry of petroleum and natural gas has supported the stand of IGL and other similar companies, stating that PNGRB is not empowered to fix or regulate the maximum retail price (MRP) at which gas is to be sold by such entities. Even the board is not empowered to fix any component of network tariff or compression charges for any City Gas Distribution (CGD) entity, the argument which was upheld by the Delhi High Court last year.