@Dhruv_Galada
I agree that if they increase prices from current levels, it still would be relatively cheaper compared to alternate fuels. The only question to consider is – What if competition offers gas at lower prices than IGL? If people are getting something cheaper than 2.40 per kg then why would they opt for 2.40 per kg gas from IGL considering that its cheaper than petrol? Comparison with other fuels becomes an irrelevant point. Also government’s stance is not in favour of price increase. They are more interested in reducing prices for consumers. So there are high chances that prices won’t improve. It would be interesting to see how this actually plays out. I am not overruling being wrong here because this field is such that things are hard to predict.
Now I am not sure how much competition IGL actually has. The competition has to scale up to the level of IGL (pipeline/volume wise) which may take some time and IGL may get some rope. Does anybody have an idea on competitors? The data on competitors distribution network (pipeline in kms ) or their volumes or their sourcing arrangements would give us a good idea where IGL stands.
On point 2, there will be benefits with natural gas coming under GST but this benefit applies to all competitors out there. If prices reduce then this benefit will be more than offset.
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