Antique Broking: CNG adoption slows in December, gas distribution companies face EV challenges

The uptake of compressed natural gas (CNG) was notably sluggish in December, reigniting worries about how the transition to electric vehicles (EVs) might affect city gas distribution (CGD) companies.

According to a report by Antique Stock Broking, December 2023 saw a decrease in CNG adoption across all three major CGD companies. This downturn primarily involves vehicle conversions from traditional fuels like petrol or diesel to CNG.

Mahanagar Gas was impacted because quarter two was a record-high quarter for the company in terms of volumes and conversions. Gujarat Gas and Indraprastha Gas Ltd (IGL) continue to suffer in terms of volume growth and that is something that has been a cause of concern in quarter two for these companies as well.