IGL Share Price Falls Over 5% After CNG Price Hike Announcement

On Monday, April 7, Indraprastha Gas Ltd. (IGL) announced a price increase for Compressed Natural Gas (CNG) across its operational areas. The revision sees a ₹1 per kilogram hike in Delhi and a ₹3 per kilogram hike in other regions such as Noida and Ghaziabad.

With the revision, the updated CNG price in Delhi now stands at ₹76.09 per kg, while in Noida and Ghaziabad, it has risen to ₹84.70 per kg. This marks the first increase in CNG prices in the Delhi market since June 2024.

Delhi Remains a Key Market for IGL

Delhi plays a pivotal role in IGL’s business operations, accounting for 70 per cent of its total CNG sales. The remaining 30 per cent is distributed across other regions. While markets outside Delhi witnessed a price increase in November 2024, this recent hike now includes the national capital after a gap of several months.

Link to Administered Price Mechanism (APM) Hike

The CNG price increase comes soon after the Indian government revised natural gas prices under the Administered Price Mechanism (APM). Effective from April to September 2025, the APM rate has been set at $6.75 per mmBtu, a 4% increase from the previous rate of $6.5 per mmBtu that remained unchanged for the first three months of the year.

This latest revision is the first since April 2023 and aligns with the recommendations of the Kirit Parikh panel, which allowed a 4% annual increase starting from the 3rd year of implementation.

Market Reaction and Stock Performance

As of 11:54 AM on April 7, the share price of IGL had declined by over 5%, making it one of the key stocks in focus for the day. The market’s reaction highlights concerns over how the price hike might affect consumer demand and overall margins, especially in a competitive and regulated segment such as city gas distribution.

Conclusion 

The impact of the price increase on customer behaviour, volume demand, and profitability remains to be seen. Additionally, other city gas distribution companies like Mahanagar Gas Ltd (MGL) may also come under investor scrutiny as market participants assess the broader implications of the gas price policy framework and demand elasticity.

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