Gas stocks surge after reports of SC order on anti-pollution measures in Delhi

Three gas stocks surged by 2.68% to 7.21% at 15:20 IST on BSE after reports the Supreme Court today, 16 December 2015, ordered that taxis plying in Delhi will have to be converted into compressed natural gas by 1 March 2016.

Meanwhile, the S&P BSE Sensex was up 159.39 points or 0.66% at 25,487.13.

Among gas stocks, GAIL (India) (up 2.68%), Indraprastha Gas (up 7.21%) and Gujarat Gas (up 5.41%) surged.

The Supreme Court's order as well as recent efforts by the Delhi government to curb alarming levels of pollution in the city will increase demand for vehicles running on cleaner fuels like compressed natural gas thus auguring well for gas producing and distribution companies.

GAIL (India) is India's leading natural gas company with a presence along the entire hydrocarbon value chain spanning E&P, LNG, pipelines, LPG, petrochemicals, city gas distribution etc.

Indraprastha Gas is the sole supplier of compressed natural gas (CNG) and PNG in Delhi, Noida, Greater Noida and Ghaziabad.

Gujarat Gas is a distribution player with presence spread across 19 districts in the state of Gujarat and Union Territory of Dadra Nagar Haveli and Thane GA which includes Palghar district of Maharashtra.

Supreme Court today, 16 December 2015, reportedly banned the registration of new diesel luxury cars and sport utility vehicles with an engine capacity of over 2000 cc until 31 March 2016 in the capital city. The Supreme Court, however, reportedly said it would consider a plea for new registrations when Euro-4 diesel engines with improved emission standards are introduced in April next year. It added that buyers of diesel vehicles should pay environment compensation charge while getting their cars registered. The SC bench headed by Chief Justice TS Thakur also banned the entry of trucks registered before 2005 into the city and hiked by 100% the Green cess levied on commercial vehicles entering Delhi. The existing diesel cars can continue to ply, SC reportedly added.

The raft of measures were announced by the Supreme Court in a bid to curb Delhi's alarming pollution levels.

The order comes days after the Delhi government announced a radical road rationing formula, to be implemented from 1 January 2016, wherein odd and even numbered cars will be kept off the roads on alternate days.

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