IGL Stock Jumps 6% After CNG Price Hike In Delhi-NCR

The stock of Indraprastha Gas Limited surged up to 6 percent on the bourses on Tuesday after the company raised prices of compressed natural gas (CNG).

The stock opened 1.4 percent higher at Rs 162.75 apiece compared to the previous close of Rs 160.45 apiece. It further surged to Rs 170 apiece during the early trading hours. This was a gain of almost 6 percent compared to the previous closing level.

The stock rose after the company increased CNG prices by Rs 2 per kilogram on Tuesday. CNG in Delhi now costs Rs 83.09 per kg, while it costs Rs 91.70 per kg in Noida and Ghaziabad.

This is the fourth such hike in the last one week. On Saturday, CNG prices were increased by Re 1.

There have been repeated hikes in the prices of petrol, diesel, and CNG this month as energy supply from the West Asian region remains choked amid the United States-Iran conflict.

The price hike in CNG will impact daily commuters and cab owners.

Petrol and diesel prices were raised by Rs 2.61-2.71 per litre on Monday, marking the fourth increase in less than two weeks as state-owned fuel retailers continued to pass on rising international oil prices to consumers.

With the latest revision, cumulative increases in petrol and diesel prices have nearly touched Rs 7.5 per litre since fuel price revisions resumed on May 15 after a prolonged freeze, stoking concerns over inflationary pressures and higher transportation costs across the economy.

Petrol prices were raised to Rs 102.12 a litre in Delhi from Rs 99.51 previously, while diesel rates were increased to Rs 95.20 per litre from Rs 92.49.

The back-to-back increases follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins, and a weaker rupee, which have sharply raised the cost of imports.