Ashu Shinghal, Managing Director of Mahanagar Gas (MGL), in an interaction with CNBC-TV18, discussed the recent product price cuts, end of exclusivity in a key region, and other latest developments in the city gas distribution (CGD) industry that have left analysts jittery.
The Street has been worried after the oil minister stated at a press conference that gas sector reforms haven’t benefited end consumers, despite efforts to keep prices affordable. The government is concerned about the high profits of gas companies and may take steps to adjust pricing and enforce compliance.
Although the gas regulator later stated it would not interfere with pricing, the price reductions for compressed natural gas (CNG) announced by various companies caused surprise.
Shinghal clarified that MGL’s ₹2.50/kg price cut for CNG was purely based on the decline in spot input prices.
“We have not done any price cut based on discussions with the government or anybody else but because the prices of …