ICICI Securities: City Gas Distributors - Competition To Hit Margins, Volumes; Lead To Derating
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ICICI Securities Report
With Petroleum and Natural Gas Regulatory Board notifying access code and determination of transportation rate for city gas distribution regulations, the decks are now cleared for competition in CGD areas where marketing exclusivity is over.
PNGRB is now likely to allow competition in these CGD areas one by one. Incumbents may take the matter to Delhi High Court, which may at best delay the advent of competition.
OMCs, which are likely to emerge as the main competitors, have fired the first salvo by asking for 90-100% rise in their commission with effect from FY19.
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