Shares of Indraprastha Gas Limited (IGL) and Mahanagar Gas Ltd (MGL) rose up to 3.5% on July 4 as the Petroleum and Natural Gas Regulatory Board has approved reforms to the Natural Gas Pipeline Tariff Regulations, 2025.
As part of the reforms, unified tariff zones have been reduced to two from three previously.
Benefit of the unified zonal tariff of zone 1 has been extended nationwide to compressed natural gas and piped natural gas segments.
Further, the board has mandated pipeline operators to procure at least 75% of their annual system-use gas through long-term contracts with a tenure of at least three years.
The board has also introduced a dedicated Pipeline Development Reserve which will utilise earnings from pipeline entities that exceed 75% utilisation benchmarks. "50% of these net-of-tax earnings will be reinvested into infrastructure development, while the remaining 50% will be passed on to consumers through tariff adjustments," the board said.
IGL shares jumped nearly 3 percent to trade at Rs 226 apiece. The shares of the company have gained nearly 5 percent in the past five days, and nearly 8 percent in the past one month. The stock however fell nearly 13 percent in past one year.
MGL shares meanwhile gained around 2.5 percent to trade at Rs 1,543 apiece. The stock has gained over 3.5 percent in the past five days, and nearly 19 percent in the past one month. It jumped over 21 percent in the past six months, but fell over 7 percent in the past one year.
The two stocks were among the top gainers on the Nifty Oil & Gas index.
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