Mumbai, April 16 -- According to a regulatory update, IGL has received a communication from GAIL (India)-the nodal agency for domestic gas distribution-stating that its allocation of domestic natural gas for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) for vehicles has been reduced by approximately 20%, effective 16 April 2025.

Currently, IGL receives gas at a government-fixed price of $6.75/MMBtu. The reduction in this cheaper domestic gas allocation is likely to increase input costs for the company.

To partially offset the shortfall, IGL has been allocated additional volumes of New Well Gas (NWG), equivalent to roughly 125% of the reduction in domestic gas. However, this gas comes at a steeper p...