Gujarat Gas least vulnerable among city gas players to competition

Subdued gas prices will benefit IGL and MGL too, the two companies that have seen their share prices correct on fears of rising competition

Worries over regulatory risks has seen shares of city gas distribution utilities such as Mahanagar Gas Ltd (MGL) and Indraprastha Gas Ltd (IGL) correction in the recent past. The regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to allow competition for city gas distribution (CGD) in Delhi, Mumbai, Thane and some other geographies, where marketing exclusivity of incumbents has already expired. While IGL shares have fallen by more than 17 per cent, Mahanagar Gas has corrected by 13 per cent. Gujarat Gas Ltd, however, continues trading firm.

Analysts say, MGL is most vulnerable and is likely to face more