Government cuts CNG and PNG prices, markets remain steady

Oil Minister M Veerappa Moily said the CNG prices will be cut by 30% and PNG prices by 20% in Delhi with effect from today. 

Shares of Indraprastha Gas-BSE 8.60 %, which supplies CNG in Delhi, picked up momentum even as the Oil Ministry announced a cut in CNG and PNG prices.

Also, the government will increase the availability of gas for domestic users. GAIL-BSE 2.55 % will uniformly supply domestic gas to the distributors.

The newly-formed AAP government in Delhi had pursued the matter with the Supreme Court challenging the Central government's cut in allocation of domestic natural gas to Delhi following an order by the Gujarat High Court.

At 12:50 pm,  the stock was at Rs 253.80, up 2.46%, on the NSE. It touched a high of Rs 256 and a low of Rs 244.50 in trade today. 

Even stocks of Petronet LNG limited continued to perform well Rs. 115.55 with upswing of BSE 4.60%. 

Stocks of Indian oil corp, Essar oil and Exide inds continuied to do well even after the announcement. 

Now, its a wait-and-watch scenario to see how the reduction affects the stock prices of the related companies.