Shares of city gas distributors climb on PNG incentive scheme

Shares of

as (IGL), Mahanagar Gas (MGL) and Adani Total Gas rose up to 3.5% on Wednesday after the government approved an incentive scheme to accelerate domestic piped natural gas (PNG) connections. Under the scheme, effective from September 1, 2026, eligible city gas distribution companies will receive an additional 200 standard cubic metres of cheaper, domestically produced APM gas for every incremental billed household PNG connection above a set threshold. The allocation will help replace costlier imported LNG used in the CNG segment, lowering overall sourcing costs. Officials said the measure should cut the payback period on new domestic connections from about 10 years to roughly three years. It aims to convert India’s large pool of unbilled PNG connections into active, paying users and expand the network, reducing reliance on imported LPG amid supply disruptions.