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MGL hikes CNG price by Rs.2.5/kg

News: Mahanagar Gas has hiked CNG price by Rs.2.5/kg to Rs.66/kg while domestic PNG price is increased by Rs.1.5/scm to Rs.39.5/scm in Mumbai and adjoining areas from January 8.

Views: This is MGL's fifth price hike in H2FY22 and first in Q4FY22. MGL increased prices to pass on higher costs as the company continues to source higher priced gas due to shortfall in domestic gas allocation. This will help MGL partially on margins front. However, further spread of Covid-19 and potential travel restrictions remains a key monitorable for sales volume growth.

Impact: Neutral