CNG Prices: Maharatna GAIL Joins Bandwagon, CNG Gets Cheaper By Rs 2.50 Per Kg; Latest Rates Here

Maharatna company, (India) is the latest to join the bandwagon of making Compressed Natural Gas (CNG) cheaper. The PSU has trimmed its CNG by Rs 2.50 per kg across various locations in the country.

Through its X handler, GAIL said that its wholly owned subsidiary, GAIL Gas Limited has announced a substantial reduction in the prices of Compressed Natural Gas (CNG) across several key locations in India where it operates.

It added, "The price of CNG at GAIL & GAIL Gas CGD outlets has been decreased by Rs. 2.50/kg."

Latest Rates Of CNG At GAIL:

Now, the latest price of CNG is at Rs 81.17 per kg in Varanasi, Rs 84.54 per kg in Patna, Rs 87.15 per kg in Ranchi, Rs 87.08 per kg in Jamshedpur, Rs 87.26 per kg in Bhubaneswar, and Rs 87.60 per kg in Cuttack.

According to GAIL, the price reduction aims to make CNG more accessible and affordable for consumers, thereby encouraging the widespread adoption of cleaner fuel options and promoting sustainable transportation practices.

Also, Foutam Chakraborty CEO of GAIL Gas & ED(CGD), GAIL (I) Limited, stated, "At GAIL, we are committed to promoting the use of clean and affordable energy solutions to benefit both consumers and the environment."

He added, "The reduction in CNG prices reflects our dedication to making sustainable transportation accessible to all, while also supporting the government's initiatives towards cleaner air and reduced carbon footprint."

Further, the reduction underscores GAIL's commitment to offering environmentally friendly fuel solutions at competitive prices, in line with the nation's efforts to combat pollution and reduce carbon emissions, it added.

Notably, GAIL pointed out that the decision to lower CNG prices comes at a crucial time when the automotive industry is witnessing a surge in the production and adoption of CNG vehicles by leading manufacturers such as SUZUKI Motors, TATA, HYUNDAI, MAHINDRA, and others.

That being said, GAIL is aiming to facilitate the transition towards cleaner and greener transportation options, ensuring a sustainable future for generations to come.

On BSE, at the time of writing, GAIL's share price traded at Rs 182.85 apiece, down by 3.02% with a market cap of Rs 1,20,291.45 crore.

In its latest research note, Motilal Oswal said, "During FY24-26E, we are modelling EBITDA to report a 14% CAGR, driven by: (1) rising natural gas transmission volumes to 141mmscmd in FY26 from 121mmscmd in FY24; (2) substantial improvement in the profitability of the petchem segment over 2HFY25-FY26, attributable to the commencement of operations of new petchem capacity and heightened demand driven by low global inventories and; (3) the commencement of operations for 3,892km of gas transmission pipelines and 560ktpa of petchem capacity."

The brokerage has recommended BUY on GAIL for a target price of Rs 215 in the near term.

Last week, GAIL Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI) Private Limited today signed a tripartite Memorandum of Understanding (MoU) to explore opportunities for the import of ethane and other hydrocarbons and the development of evacuation infrastructure at Shell Energy Terminal, Hazira. This Mo U inter-alia includes cooperation with a clear focus on developing ethane import facilities after gap assessment in existing Shell Hazira Tenilinal facilities and usage of existing pipeline routes and facilities. The MoU signed envisages to foster efficiency and swift progress of the shared project by leveraging the combined strengths of all three parties.

The Mo U is expected to offer new business prospects to all the parties along with offering diversification of petrochemical feedstock while aligning with the national priorities and the Govermnent of India's Atmanirbhar Bharat (Self Reliant India) mission with manufacturing in India.

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