IGL, MGL, Adani Total Gas Gain After Government Unveils PNG Connection Incentive

Indraprastha Gas, Mahanagar Gas and Adani Total Gas shares advanced after the government announced additional domestic gas allocation for city gas distributors that add new paying household PNG customers. The measure is scheduled to take effect from September.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Additional Domestic Gas Allocation

Under the scheme, city gas distribution (CGD) companies will receive an additional 200 standard cubic metres of domestically produced gas for every household that is connected to PNG and begins using and paying for the supply.

The Ministry of Petroleum and Natural Gas said the incentive is intended to encourage distributors to activate existing unused connections and expand pipeline networks to households that do not yet have PNG access.

The additional domestic gas allocation is expected to reduce sourcing costs for distributors. The government estimates that this could bring down the period required to recover investment in domestic PNG connections from around 10 years to approximately three years.

IGL, MGL And Adani Total Gas Shares Rise

Indraprastha Gas shares gained 3.5%, while Mahanagar Gas advanced 3.3%. Adani Total Gas rose 2.2% during the session.

The move in the IGL share price, MGL share price and Adani Total Gas share price followed the government’s announcement on the new incentive framework. The three companies are among the city gas distributors operating domestic PNG networks.

Since the start of the Middle East conflict, companies including Indraprastha Gas, Mahanagar Gas, GAIL Gas and Bharat Petroleum Corporation have introduced measures such as lower installation charges to encourage new PNG connections.

India Seeks To Reduce LPG Import Dependence

India has around 17.4 million domestic PNG connections, according to government data released on Tuesday. This compares with approximately 331.4 million active household LPG customers as of July 1.

India imports about 60% of its LPG requirement. The country imported around 22 million metric tonnes of LPG in 2025, with most shipments coming from the Middle East. The government said India spent nearly $12 billion on these imports during the year.

The expansion of PNG infrastructure is part of efforts to reduce dependence on imported LPG and lower the subsidy burden associated with household cooking fuel.

Measures To Expand PNG Network

The government has introduced other measures to support the development of PNG infrastructure, including faster approvals and standardised right-of-way charges under the Natural Gas & Petroleum Distribution Order, 2026.

States have also been encouraged to reduce VAT on natural gas to 5% to improve PNG affordability. The government said several states have already reduced the tax.

It has also launched National PNG Drive 2.0, which includes a portal for LPG cylinder surrender, household outreach and awareness programmes, along with initiatives aimed at helping housing societies shift from LPG to PNG.

A unified digital portal for new PNG connections is also being developed. The platform is intended to provide consumers with a single-window facility to apply for connections and track their status as the government pushes for wider household adoption of piped gas.