IGL, MGL, Adani Total Gas Shares Rise Up To 3.5% As Centre Pushes PNG Connections

Shares of city gas distribution companies gained on August 19 after the government announced incentives aimed at accelerating the adoption of piped natural gas (PNG) among households.

Indraprastha Gas, Mahanagar Gas and Adani Total Gas rose as much as 3.5%, 3.3% and 2.2%, respectively.

The initiative comes as disruptions to fuel shipments linked to the US-Iran conflict have increased concerns over India's dependence on imported cooking fuels.

The government is seeking to strengthen domestic PNG adoption to reduce reliance on imported LPG and lower the financial burden associated with fuel subsidies.

Centre offers gas incentives to boost PNG connections

Under the new scheme, which will take effect from September, city gas distribution companies will receive an additional 200 standard cubic metres of lower-cost domestic natural gas for every household that is connected to their network and begins using and paying for PNG.

The incentive is expected to encourage distributors to convert existing but inactive connections into paying customers while also expanding pipelines to households that are not yet connected.

According to the government, the cheaper gas could significantly improve the economics of new connections. The payback period for investments in domestic PNG infrastructure could fall to around three years from nearly a decade.

India seeks to reduce LPG import dependence

India currently has around 17.4 million domestic PNG connections, compared with approximately 331.4 million active household LPG customers as of July 1.

The country imports nearly 60% of its LPG requirements, with imports reaching about 22 million tonnes in 2025 at a cost of nearly $12 billion.

Gas companies including IGL, MGL, GAIL Gas and Bharat Petroleum have already introduced measures such as reduced installation charges to encourage households to switch to PNG.

The government has also introduced measures to strengthen PNG infrastructure, including faster approvals and standardised right-of-way charges. States have been encouraged to reduce VAT on natural gas to 5% to make PNG more affordable.