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Climbing on falling gas price: CGD firms, power producers to benefit

Fertiliser companies likely to gain the most; city gas distributors should benefit, too, but CNG demand holds key; ceramic tiles and power producers may also see solid upside

CNG
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The ceramic tiles sector, too, is among the main beneficiaries

Ujjval Jauhari New Delhi
The regular decline in the global natural gas price means the price of domestic gas sold under the administered pricing mechanism (APM) may also be revised downwards starting October 1, 2020. The government reviews the domestic gas price after every six months, based on the average gas price in countries, such as the US, the UK, Canada, and Russia, during a specified period. Analysts expect the APM gas price to be lowered to less than $2 per mmBtu (million British thermal unit) -- the third cut in a row. Notably, the current price at $2.39 prevailing during the April-September period

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First Published: Aug 23 2020 | 7:16 PM IST

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